If the Fed wants to lower the interest rate, it will
a. buy bonds and decrease the money supply.
b. buy bonds and increase the money supply.
c. sell bonds and decrease the money supply.
d. sell bonds and increase the money supply.
e. sell bonds and decrease money demand.
B
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Under President Eisenhower the problem of inflation.
A. got a lot worse. B. got a little worse. C. got a little better. D. got a lot better.
Refer to Figure 5-1. The market equilibrium price is
A) $60. B) $50. C) $40. D) < $40.
Refer to the above figure. Point B
A) equals autonomous consumption. B) equals autonomous consumption plus autonomous consumption plus planned investment plus autonomous government spending plus autonomous net exports. C) has no special significance. D) equals government expenditures.
During the Great Depression:
A. overall GDP rose. B. investment increased, but consumption decreased. C. both consumption and investment decreased. D. investment fell, but consumption increased.