PRIN.OF ECON.ACCESS CODE
2nd Edition
ISBN: 9780393691757
Author: Mateer
Publisher: NORTON
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Question
Chapter 31, Problem 1QFR
To determine
To explain:
The possibility of changing economic factors in short-run.
Expert Solution & Answer
Explanation of Solution
In short-run, real economic factors can be altered by increasing money supply. Money supply in short-run can be increased by printing money. As money is printed, it will lead to increase in money supply, thereby more funds will be available at lower interest rate. Lower interest rate enhances investment in the economy. Since investment is a part of aggregate
Therefore, seeing as a component of aggregate demand, when investment increase the aggregate demand increase which leads to reduce the
Economics Concept Introduction
Money supply:
Money supply is the total amount of cash and term deposits in an economy at a given period of time.
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20. Factors 01 pro
B. the technological innovations available to companies.
A. the laws that regulate manufacturers.
C. the resources used to create output
D. the waste left over after goods are produced.
21. Table 1.1 shows the tradeoff between different combinations of missile production and home
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of houses in
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Tutorials-Principles of Economics
m health care
In a small open economy with a floating exchange rate, the supply of real money balances is fixed and a rise in government spending ______
Group of answer choices
Raises the interest rate so that net exports must fall to maintain equilibrium in the goods market.
Cannot change the interest rate so that net exports must fall to maintain equilibrium in the goods market.
Cannot change the interest rate so income must rise to maintain equilibrium in the money market
Raises the interest rate, so that income must rise to maintain equilibrium in the money market.
Chapter 31 Solutions
PRIN.OF ECON.ACCESS CODE
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