An open market ________ by the Fed decreases interest rates and ________ investment
A) sale; decreases B) purchase; decreases
C) purchase; increases D) sale; increases
C
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Quotas increase the profits of importers but decrease the profits of exporters
a. True b. False Indicate whether the statement is true or false
The short-run Phillips curve is another way of looking at
A) aggregate supply. B) Okun's Law as applied to aggregate demand. C) potential GDP. D) aggregate demand. E) the natural rate of unemployment.
Globalization is positively associated with
A) declining standards of living. B) economic growth. C) poverty. D) declining rates of investment.
In the long run, following a combination of a negative demand shock and a temporary negative supply shock, ________
A) both inflation and output return to the original long-run equilibrium values B) inflation is permanently increased, while output returns to potential output C) output returns to potential output, while inflation may be higher or lower than its initial value D) inflation is permanently reduced, while output returns to potential output E) none of the above