The line joining the old and new optimum points following a pivotal rotation of the budget line is:
a. the price-consumption curve

Financial intermediaries are able to act as delegated monitors for individual savers because

A) other investors are unable to gain a free ride on their monitoring efforts. B) borrowers consider this role to be traditional for financial intermediaries and are willing to put up with it. C) the federal government has granted them waivers from laws protecting privacy. D) they employ a vast network of private detectives to carry out their monitoring role.

Expansionary monetary policy causes a ________ the MP curve and a ________ the aggregate demand curve

A) movement to the right along; shift to the right of B) downward shift of; shift to the right of C) movement to the left along; movement down along D) upward shift of; shift to the right of