The larger the expansionary gap, the greater the pressure on what?

a. exchange rate
b. real wages
c. price level
d. interest rates


c

Economics

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An increase in the money ________ shifts the LM curve to the ________, causing the interest rate to fall and output to rise, everything else held constant

A) demand; right B) demand; left C) supply; right D) supply; left

Economics

If you purchase a $100,000 interest-rate futures contract for 105, and the price of the Treasury securities on the expiration date is 108, your ________ is ________

A) profit; $3000 B) loss; $3000 C) profit; $8000 D) loss; $8000

Economics

Which of the following would NOT reduce the natural rate of unemployment?

A) a tax cut B) an increase in government expenditures C) wage or price controls D) all of the above

Economics

Spending so much on arms that the economy of an adversary collapses is called market warfare

a. True b. False

Economics