Which of the following best describes how an increase in the money supply shift the aggregate demand curve ?
A. The money supply shifts right prices fall spending increases and the aggregate demand curve shifts right
B. The money supply shifts right the interest rate rises investment decreases and the aggregate demand curve shifts left
C. The money supply shifts right the interest rate falls, investment increases, and the aggregate demand curve shifts right
D. The money supply shifts right, prices rise, demand curve shifts left
Which of the following is an automatic stabilizer ?
A. Spending on public schools
B. Military spending
C. All of these answers are automatic stabilizers
D. spending on the space shuttle
E. Unemployment benefits
A. The aggregate supply curve shifts to the right by more than Rs 16 billion
B. The aggregate demand curve shifts to the left by more than Rs 16 billion
C. The aggregate demand curve shifts to the right by more than Rs 16 billion
D. the aggregate supply curve shifts to the left by more than Rs 16 billion
A. supply-side economics
B. None of these answers
C. The crowding-out effect
D. The multiplier effects
An increase in the marginal propensity to consumer (MPC) ?
A. raises the value of the multiplier
B. has no impact on the value of the multiplier?
C. rarely occurs because the MPC is set by congressional legislation
D. lowers the value of the multiplier
The initial impact of an increase in government spending is to shift ?
A. aggregate demand to the right
B. aggregate demand to the left
C. aggregate supply to the right
D. aggregate supply to the left