According to the theory of the political business cycle, the fed expands the money supply before presidential elections to stimulate the economy and favor the incumbent administration

In one of the earliest studies on the link between interest rates and money demand using United States data, James Tobin concluded that the demand for money is

A) sensitive to interest rates. B) not sensitive to interest rates. C) not sensitive to changes in income. D) not sensitive to changes in bond values.

An increase in government spending, other things constant, will cause a: a. leftward shift of the aggregate supply curve

b. rightward shift of the aggregate supply curve. c. leftward shift of the aggregate demand curve. d. rightward shift of the aggregate demand curve. e. downward movement along the aggregate supply curve.