Restrictive monetary policy will:
A. Decrease the lending capacity for banks.
B. Reduce interest rates.
C. Cause a rightward shift of aggregate demand.
D. Raise the equilibrium price level.
A. Decrease the lending capacity for banks.
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Consider the market for smart phones. Which of the following shifts the demand curve rightward?
A) a decrease in the price of smart phones B) an increase in the price of smart phones C) an increase in the price of land-line phone service, a substitute for smart phones D) an increase in the supply of smart phones E) a decrease in the number of smart phone buyers
In the perfectly competitive market, individual firms exert no effect on the market price. Therefore, the firm's marginal revenue is:
A. zero. B. an upward-sloping curve. C. a downward-sloping curve. D. the same as the firm's demand curve.