Policies which reduce energy supplies, Business Law and Ethics

1. Indicate whether the following statements are true or false and briefly explain your answer.

a. Actions by government to increase spending and by the central bank to increase the money supply will cause interest rates and GDP to rise.

b. Policies which reduce energy supplies and/or raise their production costs will cause the aggregate price level to rise, national output to decrease and unemployment to rise.

c. If chartered banks invest their excess reserves in assets other than loans, the money supply will decline.

Posted Date: 3/19/2013 3:43:38 AM | Location : United States

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