In the AS/AD model, an increase in the money supply causes an increase in the interest rate and an increase in investment spending.
Answer the following statement true (T) or false (F)
False
An increase in the money supply increases the credit available to banks, which depresses interest rates and increases business investment.
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Paul David examined _______________ as an example of path dependence
a. Microsoft's Windows operating system b. the VHS format c. the QWERTY keyboard d. hydroelectric power generators
In comparing a job that requires a high level of skill to one for a job that requires a low skill level, the high-skill job
a. will always command a higher wage than the low-skill job b. can command a higher wage only if there is sufficient demand for the output produced by the job c. will command a higher wage whenever the nonmonetary characteristics of the two jobs are equivalent d. will command a higher wage whenever there is a relatively low supply of labor with the required skill level e. will command a higher wage whenever the two labor markets are perfectly competitive