Empirical evidence suggests that over the last several decades:
A. there is no correlation between the nominal and real federal funds.
B. while the FOMC has had a lot of influence over the nominal federal funds rate, they have been less successful at changing the real federal funds rate.
C. the nominal and real federal funds rates are related inversely.
D. the nominal and real federal funds rates are highly positively correlated.
Answer: D
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Assume that the yuan-dollar nominal exchange rate at the beginning of 2012 was 4 yuan per dollar and at the beginning of 2013 was 6 yuan per dollar
Given this information, identify the currency that appreciated and the currency that depreciated over 2012.
Explain what would happen to the equilibrium price and quantity of iPhones if the supply of iPhones increased while the demand for iPhones also increased
What will be an ideal response?
Programs that automatically increase government spending (relative to revenue) during a recession and automatically decrease government spending (relative to revenue) during an economic boom are called:
a. discretionary fiscal policy. b. supply-side programs. c. automatic stabilizers. d. tax credits.
Which of the following relationships reflect the law of supply?
a. an increase in QS => a decrease in Price b. a decrease in Price => an increase in supply c. an increase in Price => an increase in QS d. a decrease in Price => an increase in QS