If the Fed wants to stimulate the economy, ________
A) it reduces money supply B) it lowers spending
C) it increases tax rates D) it lowers short-run interest rates
D
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Refer to the scenario above. Which of the following is likely to be true if the game is played only once?
A) The equilibrium outcome will be a Nash. B) The equilibrium outcome will be socially inefficient. C) No unique equilibrium will occur. D) Multiple Nash equilibria will occur.
The size of the circular flow
a. measures the level of household purchases from business. b. measures the level of income and output. c. increases if there are more planned leakages. d. measures the level of prices.
Describe the U.S. Social Security system and explain how it is funded
A student bought a used car for $10,000 and resold it one year later for $6,500 . Insurance, license, and operating costs for the year were $1,500 . What was his economic cost of owning and operating the car for the year if the market rate of interest was 10 percent?
a. $3,500 b. $5,000 c. $6,000 d. $8,500