Increasing the amount of loans available should:
A) increase spending by businesses and households and the overall level of economic activity.
B) increase spending by businesses and households but reduce the overall level of economic activity.
C) increase spending by businesses and households but have no impact on the overall level of economic activity.
D) reduce business spending and increase household spending as households take advantage of the greater availability of loans.
Correct Answer:
Verified
Q1: The primary determinant of the overall level
Q2: Spending by households and businesses is influenced
Q4: An increase in loans by financial depository
Q5: The equation of exchange states that:
A) MP
Q6: Based on the equation of exchange, the
Q7: The equation of exchange shows that the
Q8: V in the equation of exchange stands
Q9: In the equation of exchange, MV and
Q10: Which of the following statements about the
Q11: Given the equation of exchange, MV =
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