Given an upward-sloping aggregate supply curve, which of the following is most likely to occur if the Fed sells bonds in the open market, ceteris paribus?
A. Greater inflation and more unemployment.
B. Greater inflation and less unemployment.
C. Lower average prices and less unemployment.
D. Lower average prices and more unemployment.
D. Lower average prices and more unemployment.
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According to the law of demand,
A) everything has its price. B) human wants are insatiable. C) people will do anything to obtain goods they want. D) there are no free goods. E) there is a negative relationship between the amount of anything people will purchase and the sacrifice that must make to obtain it.
Increases in the general price level are primarily a macroeconomic issue
a. True b. False
Brand names such as "Coca Cola" or "Nike"
a. raise the cost of goods because they require advertising to make consumers aware of the brand name and, therefore, generally increase the price of products to consumers without producing any benefit to them. b. generally convey little information about a product to consumers. c. benefit consumers by assuring them of a known quality level when they buy a product that they have little previous first-hand knowledge about. d. provide the most value to consumers for goods that are repeat-purchase items.
Financial intermediaries are important because
A. they increase costs for banks. B. they employ large numbers of people. C. they bring lenders and borrowers together in a way that lowers transaction costs. D. they provide large funds to the stock market.