Expansionary fiscal policy will most likely result in
A) a decrease in the money supply
B) an increase in the marginal propensity to consume
C) an increase in the nominal interest rates
D) a decrease in the level of output
E) a decrease in the price level
Answer: C) an increase in the nominal interest rates
Economics
You might also like to view...
Give examples of factors that decrease short-run aggregate supply. Which way does the SAS curve shift?
What will be an ideal response?
Economics
The Troubled Asset Relief Program (TARP) allowed
A) the Treasury to inject funds into commercial banks in return for stock in the banks. B) the Fed to provide funds to commercial banks in return for stock. C) the Treasury to insure bank deposits at major U.S. banks. D) the Fed to make loans to banks as the lender of last resort.
Economics