The change illustrated in the figure above is part of the transmission process of the Fed's monetary policy. As a result of the increase in the supply of loanable funds, aggregate demand ________, real GDP ________, and the price level ________

A) increases; decreases; falls
B) decreases; decreases; falls
C) increases; increases; rises
D) increases; does not change; does not change
E) None of the above answers is correct.

C

Economics

You might also like to view...

Partnership can function as an efficient organizational form when partners have similar backgrounds and skills, and each of their income is largely determined by individual effort

Indicate whether the statement is true or false

Economics

The employer mandate of the PPACA requires that:

A. every firm must purchase health insurance for their full-time employees or pay a $2,000 fine per employee. B. every firm with 50 or more full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee. C. every firm with fewer than 50 full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee. D. every firm with 500 or more employees must establish their own on-site medical facilities to provide employees with basic medical care.

Economics