An activist response to a recession would involve a shift in

Select one:

a.AD.

b.short-run AS.

c.long-run AS.

d.none of the above.

The quantity theory of money is an example of a

Select one:

a.structural model.

b.reduced form model.

c.both of the above.

d.neither of the above.

Monetary policy can affect the economy through

Select one:

a.household wealth.

b.investment.

c.credit markets.

d.all of the above.

Which of the following is a transmission mechanism of monetary policy that does NOT operate through investment?

Select one:

a.home prices

b.interest rates

c.net worth of firms

d.They all affect investment.

Which is the most important variable monetary policy that has an impact on investment?

Select one:

a.real interest rates

b.nominal interest rates

c.inflation

d.home prices