According to the Keynesian transmission mechanism, an increase in the money supply will __________ the interest rate, causing a __________ in investment, which then __________ Real GDP
A) raise; fall; raises
B) raise; rise; lowers
C) raise; fall; lowers
D) lower; fall; lowers
E) lower; rise; raises
E
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Which of the following statements is true?
A) Empirical arguments can be supported without the use of data. B) Using a large data set will strengthen the force of an empirical argument C) Using fewer observations will strengthen the force of an empirical argument. D) The number of observations used does not affect the strength of an empirical argument.
Why might a rise in the price of electric razors result in an increase in demand for nonelectric razors?
(A) Because nonelectric razors are more plentiful than electric razors. (B) Because people might decide to shift to nonelectric razors to save money. (C) Because electric razors are normal goods but nonelectric razors are inferior goods. (D) Because nonelectric razors work better than electric razors.