Draw a scatter diagram of the interest rate and the unemployment rate. Describe the relationship
What will be an ideal response?
To make a scatter diagram of the interest rate and the unemployment rate, plot the interest rate on the x-axis and the unemployment rate on the y-axis. The graph will be a set of dots and is shown in Figure A1.6 . The pattern made by the dots tells us that when the interest rate increases, the unemployment rate usually decreases so there is a negative relationship.
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Does a subsidy to sellers affect the supply curve?
A. Yes, it shifts supply vertically downward by the amount of the subsidy. B. Yes, it shifts supply to the right by the amount of the subsidy. C. No, the quantity supplied will increase, but the supply curve does not move. D. No, the quantity supplied will decrease, but the supply curve does not move.
Which of the following is not a characteristic of capitalism?
a. Private ownership of resources. b. Decentralized decision-making using markets. c. Representative democracy. d. Consumer sovereignty.
Which of the following countries has consistently run trade deficits in recent years?
a. Germany b. France c. United States d. Japan
The decrease in Money Supply, the Fed would?
A. Buy government's bonds B. Increase the discount rate C. Decrease the reserve requirement D. All of the above E. None of the above