In the short-run macro model,a decrease in the money supply will
A) lower the interest rate,increase spending,and increase GDP
B) lower the interest rate,reduce spending,and lower GDP
C) raise the interest rate,increase spending,and increase GDP
D) raise the interest rate,reduce spending,and lower GDP
E) raise the interest rate,reduce spending,and increase GDP
Correct Answer:
Verified
Q89: Changes in the interest rate
A) change business
Q90: In the short-run macro model,a decrease in
Q91: Equilibrium GDP and the interest rate are
Q92: If the Fed reduces the money supply,there
Q93: Open market purchases of bonds by the
Q95: A rise in the interest rate tends
Q96: Which of the following will increase both
Q97: In the short-run macro model,an open-market purchase
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents