Question and answer
13) In the AS/AD model, an expansionary monetary policy has the greatest effect on the price level when it A. increases both nominal and real income B. increases real income but not nominal
income C. increases nominal income but not real income D. doesn't increase real or nominal income
The answer is A. increases both nominal and real income
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Original conversation
User: 16) If the Federal Reserve increases the required reserves, financial institutions will likely lend out A. more than before, increasing the money supply B. less than before, decreasing the money supply C. more than before, decreasing the money supply D. less than before, increasing the money supply

User: 13) In the AS/AD model, an expansionary monetary policy has the greatest effect on the price level when it A. increases both nominal and real income B. increases real income but not nominal income C. increases nominal income but not real income D. doesn't increase real or nominal income

Weegy: The answer is A. increases both nominal and real income
carlaloo|Points 92|

User: 10) Suppose that consumer spending is expected to decrease in the near future. If output is at potential output, which of the following policies is most appropriate according to the AS/AD model? A. An increase in government spending B. An increase in taxes C. A reduction in government spending D. No change in taxes or government spending

Weegy: Suppose that consumer spending is expected to decrease in the near future. If output is at potential output would be A) An increase in government spending.
Expert answered|jher000|Points 7981|

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Asked 1/28/2013 8:31:43 AM
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