Suppose the government increases its expenditures by $100 billion and simultaneously reduces the money supply by $100 billion. We definitely know that
A) equilibrium GDP will fall.
B) equilibrium GDP will rise.
C) the interest rate will rise.
D) the interest rate will fall.
C
Economics
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The negative of the slope of the isoquant indicates the ___________________________
Fill in the blank(s) with the appropriate word(s).
Economics
In the quantity theory of money, the quantity of money is assumed to
A) not influence the velocity of circulation. B) rise during recessions. C) fall during recessions. D) be constant.
Economics