Suppose the Fed raises the federal funds rate. Put the following changes in order in which they occur, starting with the changes that take place almost immediately and ending with the changes that may occur up to two years afterwards:
i. Short-term interest rates rise.
ii. Long-term interest rate rises.
iii. Aggregate demand decreases.
iv. Inflation rate decreases.
A) ii-i-iv-iii B) ii-i-iii-iv C) i-ii-iv-iii D) i-iii-ii-iv E) i-ii-iii-iv
E
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The North American Free Trade Agreement affects trade between:
a. the United States, Cuba, and Brazil. b. the United States, Canada, and Mexico. c. the United States, Puerto Rico, and Cuba. d. Brazil, Bolivia, Peru, and Columbia. e. China and the United States.
People:
a. tend to specialize in those activities in which their opportunity costs are minimum b. tend to specialize in those activities in which their opportunity costs are maximum. c. never consider opportunity costs while deciding which activities to specialize in. d. consider only direct costs while deciding which activities to specialize in. e. do not behave in their own self-interest.
A monopoly is a market model in which just one firm sells a product with no close substitutes
a. True b. False Indicate whether the statement is true or false
Online music streaming services, such as Spotify, have decimated the market for CDs. Based on this information, you can conclude that streaming services:
A. and CDs are complementary goods. B. has a higher price elasticity than CDs. C. and CDs are substitutes. D. has a higher income elasticity than CDs.