The Fisher equation implies that an increase in the nominal rate of interest relative to the real rate indicates that ________
A) inflation is expected to rise
B) inflation is expected to decrease
C) the real cost of borrowing has increased
D) the real cost of borrowing has decreased
E) none of the above
A
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Which of the following could create a movement along the short-run Phillips curve so that the unemployment rate temporarily falls below the natural unemployment rate?
A) an increase in aggregate demand and a quickly responsive wage rate B) a decrease in aggregate demand and a sticky wage rate C) an increase in aggregate demand and a sticky wage rate D) an increase in aggregate supply and a sticky wage rate E) a decrease in aggregate demand and a quickly responsive wage rate
Which of the following describes what happened to the economy of the South after the Civil War?
A. The South, with the aid of new capital investment, public and private, became industrialized two decades after the Civil War. B. The transcontinental railroads that were completed in the 1860s, 1870s, and 1880s played a key role in the industrialization of the South in the 1880s and 1890s. C. The South remained the poorest region in the country until the growth of the Sun Belt took off in the 1960s. D. The South remained a largely agricultural section of the economy until the 21st century.
The public's fear of centralized power and distrust of moneyed interests led to the demise of the first two experiments in central banking, otherwise known as
A) the First Bank of the United States and the Second Bank of the United States. B) the First Bank of the United States and the Central Bank of the United States. C) the First Central Bank of the United States and the Second Central Bank of the United States. D) the First Bank of North America and the Second Bank of North America.
Any event that decreases the value of the marginal product of labor will:
A. decrease labor demand. B. decrease labor supply. C. increase labor demand. D. increase labor supply.