When the Fed increases the money supply,
A) the interest rate rises and this stimulates consumption spending.
B) the interest rate falls and this stimulates investment spending.
C) the interest rate rises and this stimulates investment spending.
D) people spend less because they have more money.
B
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Answer the following statement(s) true (T) or false (F)
1. Fiscal policy refers to the government's ability to print money. 2. Kobe beef, which some consider the best beef in the world, is produced in Japan and sold in the U.S. (in extremely limited quantities); this is an example of a U.S. import.
If we compare the wage rate and the level of employment achieved in a competitive labour market with those in a monopsonistic labour market, the latter will generate
A) a lower level of employment and a lower wage. B) the same outcomes as in a competitive labour market. C) a higher level of employment and a higher wage rate. D) a lower level of employment and a higher wage rate. E) a higher level of employment and a lower wage.