According to monetarists, what is the effect of an increase in the money supply?

Group of answer choices

Output and prices rise.

Output falls, and prices rise.

Output remains constant, and prices rise.

None of the above

Flag question: Question 53Question 531pts

Which of the following best describes stagflation?

Group of answer choices

Prices fall and output increases.

Prices fall and output decreases.

Prices rise and output increases.

Prices rise and output decreases.

Flag question: Question 54Question 541pts

If Emily writes a check for her groceries, she is using money as a

Group of answer choices

medium of exchange.

store of value.

unit of account.

means of liquidity.

Flag question: Question 55Question 551pts

The determination of investment in an economy comes from the equality of

Group of answer choices

consumer spending and foreign spending.

aggregate expenditures and consumer savings.

consumption and income.

the three uses of income and aggregate expenditures.

Flag question: Question 56Question 561pts

Which of the following chains of events explains how government spending crowds out investment spending?

Group of answer choices

Government spending increases, lowering prices, lowering the demand for money, forcing businesses to compete for a fixed supply of funds and lowering investment.

Government spending increases, reducing consumption, lowering output, raising prices, raising the demand for money, raising interest rates, lowering investment.

Government spending increases, raising output, raising prices, raising the demand for money, raising interest rates, lowering investment.

Government spending increases, lowering tax revenues, increasing prices, raising the demand for money, raising interest rates, lowering investment.

Flag question: Question 57Question 571pts

Supply-side economists hold the belief that decreasing the tax rate can

Group of answer choices

increase prices and decrease output.

increase both prices and output.

decrease prices and increase output.

decrease both prices and output.

Flag question: Question 58Question 581pts

The graph below shows an example of "bad deflation."

Group of answer choices

True

False

Flag question: Question 59Question 591pts

Financial intermediaries are

Group of answer choices

financial institutions through which lenders can indirectly provide funds to borrowers.

markets that facilitate stock and bond transactions.

financial institutions through which lenders can directly provide funds to borrowers.

identical to financial markets.