Which combination of signals would be a strong indication that Fed policy is too expansionary and that a shift to a more restrictive policy is in order?
a. commodity prices are falling and the dollar is appreciating.
b. commodity prices are rising and the dollar is depreciating.
c. commodity prices are rising and the dollar is appreciating.
d. commodity prices are falling and the dollar is depreciating.
B
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If the Federal Reserve conducts an open market purchase, the
A) interest rate will not change. B) interest rate will increase. C) money supply is decreased. D) interest rate will decrease.
After Hurricane Andrew hit Florida and Louisiana, consumers expressed outrage at the high prices being charged for chainsaws, generators, and bottled water. If governments followed the consumers’ demands and imposed price ceilings in these markets, what is the likely result?
What will be an ideal response?
All else constant, a decrease in the level of economic activity in foreign countries could be expected to have an adverse effect on the domestic economy
Indicate whether the statement is true or false
Increases in ________ typically lead to decreases in private saving
A) the interest rate B) disposable income C) autonomous consumption D) all of the above E) none of the above