Quantitative easing involves policies that are designed to:
A. directly increase the money supply by a certain amount.
B. indirectly increase the money supply by decreasing interest rates.
C. directly increase aggregate demand through increased government spending.
D. indirectly increase aggregate demand through decreased taxes.
A. directly increase the money supply by a certain amount.
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Economic costs include implicit costs but not explicit costs
Indicate whether the statement is true or false
The short-run aggregate supply curve slopes upward because: a. firms normally can purchase some inputs at prices that are temporarily fixed in the short run. b. firms seek maximum profits and always try to increase output in the short run
c. firms purchase inputs that increase in price as the price level rises in the short run. d. All of the above are correct.