Of the Four Effects on Interest Rates from an Increase

question 35

Multiple Choice

Of the four effects on interest rates from an increase in the money supply,the initial effect is,generally,the

• A)income effect.
• B)liquidity effect.
• C)price level effect.
• D)expected inflation effect.

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Definitions:

Ethical Reasoning

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles.

Programmed Decisions

Decisions that are routine and repetitive, made according to established guidelines or procedures.

Nonprogrammed Decisions

Decisions made in response to situations that are unique, are poorly defined and largely unstructured, requiring creative solutions.

Certainty

The state of being sure or confident about something, often with clear, predictable outcomes.