If the Federal Reserve targets the interest rate and the money demand curve shifts to the left, then the Fed
A) cannot maintain the interest rate target.
B) can maintain the interest rate target, but at a lower quantity of the money supply.
C) can maintain the interest rate target, but at a higher quantity of the money supply.
D) can maintain the interest rate target with no change in the money supply.
Answer: B
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Refer to Table 9-11. If the actual terms of trade are 1 hat for 1.8 clocks and 150 hats are traded, how many clocks will Denmark gain compared to the "without trade" numbers?
A) 30 B) 100 C) 150 D) 900
According to many liberals, the Bureau of Labor Statistics
A. overstates the number of employed and understates the unemployment rate. B. overstates the number of employed and overstates the unemployment rate. C. understates the number of employed and overstates the unemployment rate. D. understates the number of employed and understates the unemployment rate.
If the Consumer Price Index rose from 180.9 in 2005 to 418.5 in 2015, what is the total percentage change in prices over this 10-year period?
A. 127.21 percent. B. 80.9 percent. C. 131.34 percent. D. 18.5 percent.
What happens to quantity demanded when price is lowered?
A. It rises B. It falls C. It stays the same D. It cannot be determined if it rises, falls, or stays the same