Changes in the interest rate
a. shift aggregate demand whether they are caused by changes in the price level or by changes in fiscal or monetary policy.
b. shift aggregate demand if they are caused by changes in the price level, but not if they are caused by changes in fiscal or monetary policy.
c. shift aggregate demand if they are caused by fiscal or monetary policy, but not if they are caused by changes in the price level.
d. do not shift aggregate demand.
c
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The most important tool of monetary policy is ________, through which the Fed affects the variable ________ in the money-creation formula
A) open market operations, e B) open market operations, H C) rediscount policy, e D) rediscount policy, c E) reserve requirement policy, e
Suppose the world price of a television is $300 . Before Paraguay allowed trade in televisions, the price of a television there was $350 . Once Paraguay began allowing trade in televisions with other countries, Paraguay began
a. importing televisions and the price of a television in Paraguay decreased to $300. b. importing televisions and the price of a television in Paraguay remained at $350. c. exporting televisions and the price of a television in Paraguay decreased to $300. d. exporting televisions and the price of a television in Paraguay remained at $350.