Multiple Choice
In the short run, an increase in the money supply causes interest rates and aggregate demand to do what?
A) It causes interest rates to increase and aggregate demand to shift right.
B) It causes interest rates to increase and aggregate demand to shift left.
C) It causes interest rates to decrease and aggregate demand to shift right.
D) It causes interest rates to decrease and aggregate demand to shift left.
Correct Answer:
Verified
Correct Answer:
Verified
Q4: Which of the following shifts money demand
Q5: According to the theory of liquidity preference,
Q7: According to the liquidity preference theory, equilibrium
Q11: According to liquidity preference theory, what shape
Q12: In a small open economy with perfect
Q13: During recessions, how do automatic stabilizers tend
Q54: Over what period of time is the
Q97: According to the crowding-out effect, how do
Q115: According to liquidity-preference theory, how does a
Q188: During recessions, the government tends to run