In the graph below, the change in the individual's preferences indicated by a shift from indifference curve A to indifference curve B will result in:
A. A decrease in demand for good Y
B. No change in the demand for good Y
C. A decrease in demand for good X
D. An increase in demand for good X
C. A decrease in demand for good X
Economics
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Suppose the economy experiences a recessionary gap. Expansionary monetary policy will
A) increase interest rates and increase the bond prices. B) increase interest rates and decrease the bond prices C) decrease interest rates and increase the bond prices D) decrease interest rates and decrease the bond prices
Economics
If multiplier effects are ____ than policy makers expect or the natural rate of real output is _____ than expected, monetary policy will tend to overshoot its intended effects
a. Greater; greater. b. Greater; less c. Less; greater d. Less; less
Economics