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Introduction to Economics 2
Introduction to Economics 2 Deneme Sınavı
Introduction to Economics 2 Deneme Sınavı Sorusu #349678
Introduction to Economics 2 Deneme Sınavı Sorusu #349678
Which of the following shows in a chained way how a decreasing supply of money will affect equilibrium real GDP?
Ms↓→ i↑ → I↓ → AE↓ → Y↓
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Ms↓→ i↑ → I↑ → AE↑ → Y↑
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Ms↓→ i↓ → I↑ → AE↑ → Y↑
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Ms↓→ i↓ → I↓ → AE↓ → Y↑ |
Ms↓→ i↓ → I↓ → AE↑ → Y↑ |
Yanıt Açıklaması:
Indirect channel between quantity of money and economy works via interest rate. Decrease in money supply increases equilibrium interest rate, this increase in interest rate decreases investment expenditures. Decreasing investment spending reduces both aggregate expenditures and equilibrium level of income.
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