An increase in the supply of money will lead to a(n)
A) increase in equilibrium real GDP and an increase in the equilibrium interest rate.
B) increase in equilibrium real GDP and a decrease in the equilibrium interest rate.
C) decrease in equilibrium real GDP and an increase in the equilibrium interest rate.
D) decrease in equilibrium real GDP and a decrease in the equilibrium interest rate.
Ans: B) increase in equilibrium real GDP and a decrease in the equilibrium interest rate.
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An increase in the price level will: a. make the consumption function flatter. b. make the consumption function steeper
c. increase consumption because wages will increase. d. decrease consumption because falling interest rates make it cheaper to borrow. e. decrease consumption because the value of net wealth will decrease.
The longest economic expansion on record lasted
A. almost five years. B. almost six years. C. nine years. D. ten years.