In a demand-pull inflation, if the Fed stops expanding the quantity of money...
What will be an ideal response?
the demand-pull inflation ends
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If the Fed engages in quantitative easing, it has likely
A) started paying interest on required reserves. B) increased the federal funds rate by selling private securities. C) increased the discount rate to prevent inflation. D) decreased the discount rate by selling its own securities. E) decreased the federal funds rate to almost zero by buying large sums of securities.
Using the standard 45° line diagram, how does an increase in investment spending effect the expenditure schedule?
A. It shifts the expenditure schedule downward. B. It shifts the expenditure schedule upward. C. It increases the slope of the expenditure schedule. D. It decreases the slope of the expenditure schedule.
You're traveling in Ireland and are thinking about buying a new digital camera
You've decided you'd be willing to pay $125 for a new camera, but cameras in Ireland are all priced in euros. If the exchange rate is 0.85 euros per dollar, what's the highest price in euros you'd be willing to pay for a camera? A) 105 euros B) 106.25 euros C) 110.15 euros D) 147 euros
When the market for a good is in equilibrium,
What will be an ideal response?