According to Keynes, the effect on planned real investment spending resulting from the interest-rate impact of a decrease in the money supply
A) impacts the economy through the multiplier.
B) does not impact the economy.
C) impacts the economy by reducing the value of the U.S. dollar.
D) impacts the economy by increasing the deficit.
A
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Every dollar added to the total reserves of the commercial banking system
A) compels the banks to reduce their loans by more than a dollar. B) compels the banks to expand their loans by more than a dollar. C) enables the banks to expand their loans by more than a dollar. D) enables the banks to expand their loans by one dollar. E) is one less dollar in the hands of the public.
Will increases in federal spending always increase real GDP and employment in the short run? Are there any circumstances in which the federal government would not want to increase its spending even if it results in higher uotput and lower unemployment in the short
What will be an ideal response?