A decrease in the discount rate
A) reduces the cost of borrowing from the Fed.
B) increases the cost of reserves borrowed from the Fed.
C) signals the Fed's desire to decrease the money supply.
D) signals the Fed's desire to reduce lending to commercial banks.
A
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________.
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
In the four-part diagram used to construct the IS curve, a lower interest rate
A) has no effect on Y. B) has no effect on the position of the demand for autonomous planned spending curve. C) has no effect on the position of the IS curve. D) none of the above.
Who would describe economic growth by relating the level of investment to the changes in the level of national income?
a. market theorists b. housing cycle theorists c. innovation cycle theorists d. real business cycle theorists e. internal cycle theorists
Consumer groups tend to lobby for
A) price floors. B) price ceilings. C) quantity quotas. D) taxes.