An increase in income will tend to cause which of the following?
A) an increase in the monetary base (H)
B) a reduction in H
C) an increase in the interest rate
D) a reduction in the money multiplier
E) none of the above
C
You might also like to view...
Suppose the economy is producing at the natural rate of output. A decrease in consumer and business confidence will cause ________ in real GDP in the short run and ________ in inflation in the short run, everything else held constant
A) an increase; an increase B) a decrease; a decrease C) no change; an increase D) no change; a decrease
Of the four models of the business cycle, which model's implication concerning the change in real wages during recessions is consistent with actual observed changes in real wages during recessions?
A) the Real Business Cycle theory B) the Friedman-Phelps-Lucas Model C) the Keynesian Model D) None of the above.