Answer:
D. the market will fail Explanation: The output at maximum level will eventually reduce demand because the product will be over in circulation which attract a deducting in its price and demand too.
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Answer:
Option B, lower interest rates and increase the equilibrium GDP.
Explanation:
Option B is correct because the increase in the money supply will reduce the interest rate and increase the real GDP or output on the country because the rise in the money supply will results in more money in the hand of people. Therefore, more investment and production will be done in the economy. Thus, a rise in the production of output in the economy will result in the rise of GDP
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