An decrease in the money supply will lead to a ______.
a. higher interest rate in the short run
b. lower interest rate in the short run
c. higher interest rate than the original in the long run
d. lower interest rate than the original in the long run
a. higher interest rate in the short run
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Refer to Table 11-5. Consider the statistics in the table above in describing the industrialized countries. Are these consistent with the economic growth model? Briefly explain
What will be an ideal response?
One example of a Phillips Curve would be a
A) positive relationship between deviations from trend in real and nominal interest rates. B) negative relationship between deviations from trend in real and nominal interest rates. C) positive relationship between deviations from trend in the level of prices and the level of aggregate economic activity. D) negative relationship between deviations from trend in the level of prices and the level of aggregate economic activity.