goes up correct answers when money supply goes down, interest rate spread (r)...
people can't pay loans and banks don't have money correct answers why do bank failures occur?
spending and GDP goes down correct answers when stock market crashed, people had to save again, so...
falls, down, ...
raise interest rates correct answers if inflation rate is high, unemployment is low, and index is
high, you should...
cut interest rates correct answers if unemployment is high, inflation is low, and index is low, you
should...
down correct answers if money supply is down and money demand is down, then the QM is...
A + B (Y - T + R) correct answers C= (equation)
Consumption correct answers C=
autonomous consumption correct answers A=
MPC correct answers B= (how much income they spend compared to saved) (between 0-1)
disposable income correct answers (Y - T + R)=
income correct answers Y=
taxes correct answers T=
transfer correct answers R=
transfers correct answers social security, unemployment insurance, health insurance, food
stamps, etc.
fiscal policy correct answers adjusting government taxes and spending to fight recession and
inflation
cut taxes, raise transfers, increases purchases, which increases AD correct answers during
recession, you should...
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