Bthemoneysupplywilldecreaseinterestrateswillfallandgdp

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Unformatted text preview: terest rates C) short-term real interest rates; long term real interest rates 1 D) short-term nominal interest rates; long term real interest rates 8) If the Fed pursues expansionary monetary policy then A) the money supply will decrease, interest rates will rise and GDP will fall. B) the money supply will decrease, interest rates will fall and GDP will fall. C) the money supply will increase, interest rates will rise and GDP will rise. D) the money supply will increase, interest rates will fall and GDP will rise. 9) Contractionary monetary policy causes A) aggregate demand to rise, and the price level to rise. B) aggregate demand to fall, and the price level to fall. C) aggregate demand to rise, and the price level to fall. D) aggregate demand to fall, and the price level to rise. 10) Suppose that the economy is pro...
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This note was uploaded on 02/14/2013 for the course ECON 1002 taught by Professor Fu during the Spring '09 term at HKU.

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