Which of the following options would be most likely to cause an increase in short-term real interest rates?

a. The Federal Reserve cuts the discount rate.
b. The Federal Reserve lowers the reserve requirement.
c. The Federal Reserve sells bonds in the open market.
d. The federal budget is shifted toward a surplus.


C

Economics

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Pat Robertson, a TV evangelist and former Republican Party candidate for president, once said that “debt is an affront to God,” so good Christians should not spend beyond their incomes. Indeed, Robertson wants Christians to save more. If more Americans, Christians as well as others, took his message seriously, how would we represent the result using a Keynesian macroeconomic model?

A. A downward movement along the consumption function B. An upward movement along the consumption function C. A downward shift of the consumption function D. An upward shift of the consumption function

Economics

A vertical supply curve represents:

A) an inverse relationship between price and quantity supplied. B) an independent relationship between price and quantity supplied. C) an independent relationship between price and supply. D) a direct relationship between price and quantity supplied. E) a direct relationship between price and supply.

Economics

Structural unemployment is:

A. the result of the ordinary difficulty of matching employee to employer. B. persistent, long-term unemployment. C. short-term unemployment. D. correlated with the ups and downs of the business cycle.

Economics

When changes to a company’s output do not affect its long-term average total cost curve, that company is experiencing ______.

a. constant returns to scale b. economies of scale c. diseconomies of scale d. variable returns to scale

Economics