Suppose there was a large increase in net exports. If the Fed wanted to stabilize output, it could
a. increase the money supply, which will reduce interest rates.
b. decrease the money supply, which will reduce interest rates.
c. increase the money supply, which will increase interest rates.
d. decrease the money supply, which will increase interest rates.
d
You might also like to view...
A hot dog vendor on a street corner could increase the quantity of hot dogs her customers demand by 12 percent if she lowers the price of a hot dog 10 percent. The demand for the hot dogs is
A) cross elastic. B) arc elastic. C) unit elastic. D) elastic.
Given the production function Y = A if output grows by five percent, the capital input grows by five percent, and the labor input grows by two percent, calculate the Solow residual
Calculate the growth rates of output per worker and capital per worker.
Which of the following is NOT an economic good?
A. broccoli B. garbage C. a textbook D. a haircut
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 OLED televisions could be produced, production of LCD televisions would have to be reduced by
A. more than 30. B. exactly 60. C. fewer than 30. D. exactly 30.