An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply.
B. increase in aggregate demand.
C. increase in short-run aggregate supply.
D. decrease in aggregate demand.
Answer: D
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High inflation can spiral out of control when
A) expected inflation increases nominal interest rates, causing the Fed to buy bonds, increasing the money supply and further increasing inflation. B) expected inflation decreases nominal interest rates, causing the Fed to buy bonds, increasing the money supply and further increasing inflation. C) expected inflation increases nominal interest rates, causing the Fed to sell bonds, increasing the money supply and further increasing inflation. D) expected inflation decreases nominal interest rates, causing the Fed to sell bonds, increasing the money supply and further increasing inflation.
Any amount that a bank chooses to keep on hand beyond what it is required to is called:
A. excess reserves. B. excess deposits. C. federal funds. D. extra holdings.
Briefly discuss the determinants of demand other than price
What will be an ideal response?
The decision on the DuPont cellophane case of 1956 dealt with the issue of:
A. Unfair advertising practices B. Determining the relevant market for a particular product C. DuPont's ownership of General Motors stock D. Price fixing in the chemical industry