Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.

A. lower; potential
B. higher; potential
C. higher; higher
D. lower; higher


Answer: B

Economics

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If a bank has $50 million in rate-sensitive assets and $20 million in rate-sensitive liabilities then

A) an increase in interest rates will reduce bank profits. B) a decrease in interest rates will reduce bank profits. C) interest rate changes will not impact bank profits. D) a decrease in interest rates will increase bank profits.

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A) inflation targeting B) zero inflation policy C) "just do it" policy D) monetary targeting

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a. True b. False Indicate whether the statement is true or false

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