Which of the following is the least likely take place if the Fed responds to a negative demand shock by reducing the real interest rate?
A) IS shifts to the right
B) output gap returns to zero
C) inflation returns to its previous rate
D) MP shifts down
A
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The quantity of money that people choose to hold is
A) positively related to the nominal interest rate. B) positively related to real GDP. C) negatively related to the price level. D) positively related to the availability of ATM machines.
The division of labor facilitates productivity increases for all of the following reasons, except one. Which is the exception?
a. It allows people to do those tasks for which they have the greatest natural ability. b. Workers get better at tasks, the more they repeat them. c. The more experience workers gain by specializing in a task, the more likely they will enjoy that task. d. More sophisticated production techniques are introduced. e. The division of labor often permits the introduction of labor-saving machinery.
Agricultural Products can be modeled best using the model of
A. monopoly. B. oligopoly. C. perfect competition. D. monopolistic competition.
Inflation makes certain things MORE valuable in real terms, including:
a. anything expressed in dollars. b. a monetary grant from your university. c. real estate and precious metals. d. a fixed monthly pension payment.