Monetary restraint is associated with all of the following except

A. A decrease in aggregate demand.
B. An increase in the reserve requirement.
C. A decrease in interest rates.
D. A decrease in the money supply.

Answer: C

Economics

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Following a decrease in government spending, as the price level falls we would expect the level of interest rates to ________ and investment to ________

A) decrease; increase B) increase; decrease C) decrease; decrease D) increase; increase

Economics

Explain why the simple deposit multiplier overstates the true deposit multiplier

What will be an ideal response?

Economics