If the economy experiences an inflationary gap, a contractionary monetary policy will
A) increase interest rates and increase the bond prices.
B) increase interest rates and decrease the bond prices.
C) decrease interest rates and increase the bond prices.
D) decrease interest rates and decrease the bond prices.
Ans: B) increase interest rates and decrease the bond prices.
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A decrease in U.S. prices relative to European prices
A) will decrease European exports to the United States. B) will increase U.S. imports from Europe. C) will decrease U.S. exports to Europe. D) will not affect U.S. trade with Europe.
The number of workers employed will not change as a result of an increase in productivity when which of the following occurs?
A) The AS curve shifts downward. B) Output growth exceeds productivity growth. C) Productivity growth is equal to output growth. D) The AD curve shifts to the right. E) none of the above
Suppose you bought a concert ticket from Ticketmaster for $50, but when you get to the concert, there are a large number of people waiting outside who offer to pay you more than $50 for your ticket. What is probably true?
A. The Ticketmaster price is the equilibrium price. B. The Ticketmaster price was above the equilibrium price. C. There is an excess demand for tickets at the Ticketmaster price. D. There is an excess supply of tickets at the Ticketmaster price.
Refer to Figure 15-1. Which of the following statements about the firm depicted in the diagram is true?
A) The fact that this firm is a natural monopoly is shown by the long-run average total cost curve still falling when it crosses the demand curve. B) The fact that this firm is a natural monopoly is shown by the continually declining market demand curve as output rises. C) The fact that this firm is a natural monopoly is shown by the fact that marginal cost lies below the long-run average total cost where the firm maximizes its profits. D) The fact that this firm is a natural monopoly is shown by the continually declining marginal revenue curve as output rises.