In a Keynesian model,an increase in the money supply results in
A) a decrease in the interest rate and increases in investment and GDP.
B) decreases in the interest rate, investment, and GDP.
C) increases in the interest rate, investment, and GDP.
D) an increase in the interest rate with decreases in both investment and GDP.
E) a decrease in the interest rate, with the effect on investment and GDP uncertain.
Correct Answer:
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Q28: A decrease in the money supply
A) shifts
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A) decreases
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Q34: Which of the following best describes the
Q35: It is not just the interest rate
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A) have identical
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