If the Fed decides to increase interest rates to fight off potential inflation, and their policy action kept the inflation rate stable, then other things equal, this would result in
A) the IS curve shifting to the right.
B) the IS curve shifting to the left.
C) the MP curve shifting up.
D) the MP curve shifting down.
C
You might also like to view...
A firm with two or more owners who have unlimited liability is known as
A) a partnership. B) a proprietorship. C) a corporation. D) an establishment.
Assume the capital-labor ratio remains constant. If investment increases at a constant rate, real GDP per worker will increase ________, and if total factor productivity increases at a constant rate, real GDP per worker will increase ________
A) at an increasing rate; at an increasing rate B) at a constant rate; at an increasing rate C) at a constant rate; at a decreasing rate D) at a decreasing rate; at a constant rate
In the market for bank reserves, the supply of reserves is
A) an upward sloping curve. B) a downward sloping curve. C) a vertical curve. D) none of the above.
Because of an increase in the work-force participation rate for women, the availability of uncompensated child care (free care by aunts, sisters, and grandmothers) has become less available to poor women, So, as a consequence, the fact that child care must now be paid for suggests that the
A. poverty rate is understated. B. poverty is not a problem. C. poverty line should be revised downward. D. poverty gap is overstated.