In the cause-effect chain linking changes in the banks' excess reserves and the resulting changes in output and employment in the economy:
A) A decrease in aggregate demand will increase output
B) An increase in the money supply will decrease the rate of interest
C) A decrease in excess reserves will increase the money supply
D) A decrease in the rate of interest will decrease aggregate demand

Question

Quizplus · Accepted Answer

The Answer of In the cause-effect chain linking changes in the banks' excess reserves and the resulting changes in output and employment in the economy:
A) A decrease in aggregate demand will increase output
B) An increase in the money supply will decrease the rate of interest
C) A decrease in excess reserves will increase the money supply
D) A decrease in the rate of interest will decrease aggregate demand

In the Cause-Effect Chain Linking Changes in the Banks' Excess