When the economy is at full employment __________ interest rates are __________ by an expansionary monetary policy if inflationary expectations are generated.
A) real; decreased
B) real; not changed
C) nominal; decreased
D) nominal; not changed
Correct Answer:
Verified
Q61: A rise in the money supply _
Q62: A rise in government expenditure _ the
Q63: Monetarists believe in a relatively unstable _
Q64: Keynesians believe in a relatively stable _
Q65: The quantity of money demanded increases at
Q67: "A drop in the money supply lowered
Q68: "A rise in the money supply raised
Q69: "A rise in government expenditures raised output
Q70: Suppose that IS and LM intersect at
Q71: The quantity of money demanded suddenly increases
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