Multiple Choice
In 2009, Professor Mankiw wrote an article in the New York Times suggesting negative interest rates. The logic is that consumers would spend more money. The additional spending would:
A) increase aggregate demand and act as a boost to the economy.
B) decrease aggregate demand and act as a boost to the economy.
C) increase aggregate demand and slow down the economy.
D) decrease aggregate demand and slow down the economy.
Correct Answer:

Verified
Correct Answer:
Verified
Q2: The equilibrium interest rate occurs in the
Q3: When the central bank contracts the money
Q4: An increase in the interest rate reduces
Q5: Keynes thought that the behaviour of the
Q6: The crowding-out effect is caused by<br>A) an
Q7: The equilibrium interest rate is the rate
Q8: More reflective of current central bank policy
Q9: As the interest rate falls, people become
Q10: Different theories of the interest rate are
Q11: If asset markets are driven by the