Assume that steel is used to produce monkey wrenches. Ceteris paribus, if the price of steel rises, then
A. There will be a leftward movement along the initial supply curve for monkey wrenches.
B. There will be a rightward movement along the initial supply curve for monkey wrenches.
C. The supply curve for monkey wrenches will shift to the right.
D. The supply curve for monkey wrenches will shift to the left.
Answer: D
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Faster long-term growth can be achieved by discouraging saving and encouraging consumption
Indicate whether the statement is true or false
Refer to Table 19-12. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The base year used in calculating real GDP is
A) 2013. B) 2014. C) 2015. D) 2016.
Suppose that the Fed announces a low-money-growth policy to control inflation and workers sign low-wage contracts as a result. If instead, the Fed had implemented a high-money-growth policy, which of the following would not occur?
a. The unemployment rate would increase. b. The Fed's stated policy would be time inconsistent. c. The unemployment rate would be less than the natural rate. d. The Fed would not achieve credibility through its actions. e. The rate of inflation would be higher than expected.
When the Fed wants to lower the Federal funds rate, it:
A. Increases the discount rate B. Increases the reserve ratio C. Buys bonds from banks and the public D. Sells bonds to banks and the public