If you were a Keynesian and wanted to stimulate the economy (to increase real GDP), you would
a. increase the money supply to lower the interest rate in order to increase investment
b. increase the money supply to lower the interest rate in order to decrease investment
c. decrease the money supply to lower the interest rate in order to increase investment
d. decrease the money supply, which causes consumption to increase and saving to fall
e. increase the money supply, which causes the interest rate to increase and production to increase as well
A
You might also like to view...
Investments are actions that incur costs in the future but provide expected benefits today
Indicate whether the statement is true or false
The figure above shows a perfectly competitive firm. The figure shows a firm
A) in the short run. B) in the long run. C) at its shutdown point. D) Both answers A and C are correct.