35. The opportunity cost of holding idle money balancesO a Increases as bond prices rise.Ob. Decreases as profit rates rise.O c Increases as interest rates rise.O d. Allows individuals to benefit fron rapid inflation.Oe ls nonexistent for most high-income households.Question 3636. In a Keynesian model, an increase in the money supplyO a. Shifts the C+1+G+(EX - IM) line downward.O b. Shifts the C+1+G+ (EX - IM) line upward.O C Shifts the investment function downward.O d. Causes interest rates to riseO e. Has no effect on the level of economic activity. 33. When the government finances its expenditures by borrowing from consumers and businessfirms,O a Interest rates rise, reducing private investment spending.O b. It creates new money, making the deficit greater than it would otherwise have been.CO C The national debt goes down.O d. it creates a surplus.O e. It is more Inflationary than if it borrows from the central bankQuestion 349 pts34. A decrease in the money supplyO a Shifts the aggregate supply curve to the right.O b. Shifts the aggregate supply curve to the left.O C Affects neither the aggregate demand nor the aggregate supply curve.O d. Shifts the aggregate demand curve to the right."O e Shifts the aggregate demand curve to the left.

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35. The opportunity cost of holding idle money balances 1a ncreases as bond prices rise. Ob. Decreases as profit rates rise. O c Increases as interest rates rise. O d. Allows individuals to benefit from rapid inflation. Oes nonexistent for most high-income households. Question 36 36. In a Keynesian model, an increase in the money supply O a Shifts the C++G+(EX - IM) line downward Ob Shifts the C+1+G+(EX- IM) line upward. OC Shifts the investment function downward. O d. Causes interest rates to rise Oe Has no effect on the level of economic activity.

35. The opportunity cost of holding idle money balances 1a ncreases as bond prices rise. Ob. Decreases as profit rates rise. O c Increases as interest rates rise. O d. Allows individuals to benefit from rapid inflation. Oes nonexistent for most high-income households. Question 36 36. In a Keynesian model, an increase in the money supply O a Shifts the C++G+(EX - IM) line downward Ob Shifts the C+1+G+(EX- IM) line upward. OC Shifts the investment function downward. O d. Causes interest rates to rise Oe Has no effect on the level of economic activity.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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