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Author Question: According to proponents of the interest-rate-based monetary policy transmission mechanism, any ... (Read 56 times)

mwit1967

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on: Jun 30, 2018
According to proponents of the interest-rate-based monetary policy transmission mechanism, any increase in the money supply
 
  A) causes velocity to increase, and so in the short run nominal Gross Domestic Product (GDP) must increase.
  B) will increase Gross Domestic Product (GDP) only if interest rates fall and investment is sensitive to decreasing interest rates.
  C) is effective in increasing Gross Domestic Product (GDP) only if it causes an outward shift of the aggregate supply curve.
  D) will move the economy from the liquidity trap during times of recession if interest rates fall enough to stimulate private investment.

Question 2

Refer to the table above. Based on this information, we can conclude that Laborland has a ________.
 
  A) current account surplus B) current account deficit
  C) trade surplus D) budget deficit


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dantucker

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

B


mwit1967

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Reply 2 on: Jun 30, 2018
Excellent

recede

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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