If there are no changes in inflation expectations, a purchase of government bonds by the Fed in the open market will cause ________
A) the federal funds rate to rise and the long-run expected real interest rate to fall
B) both the federal funds rate and long-run expected real interest rate to fall
C) both the federal funds rate and long-run expected real interest rate to rise
D) the federal funds rate to fall and the long-run expected real interest rate to rise
B
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Choice architecture can:
A. alter actual decisions and thus the ultimate outcomes. B. make it easier for people to make choices that will make them happier in the long run. C. help people make better choices without eliminating free choice. D. All of these statements are true.
According to the table shown, what can be said about the cost of living in 2010?
A. It was lower than in the base year.
B. People experienced a decrease in the cost of living because the CPI is less than 100.
C. People experienced an increase in the cost of living because the CPI isn't over 100.
D. There must have been a recession because the CPI is less than 100.
The balance of payments ____________
a. is always zero b. is always one c. is positive when the nation has a trade surplus d. is negative when the nation has a trade deficit e. is positive when the nation has a trade deficit
Producer surplus measures the benefit to sellers from receiving a price above their costs
a. True b. False Indicate whether the statement is true or false