If the Fed conducts open-market sales, which of the following quantities increase(s)?
a. interest rates, prices, and investment spending
b. interest rates and prices, but not investment spending
c. interest rates and investment, but not prices
d. interest rates, but not investment or prices
d
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The various quantities of output that all market participants are willing and able to buy at alternative price levels in a given time period is:
A. Market demand. B. Aggregate demand. C. Market supply. D. Aggregate supply.
Under the purchasing-power-parity theory, if a certain market basket of identical goods costs $10,000 in the United States and 2,500 euros in France, the exchange rate should be ______.
a. $1 to 1 euro b. $2 to 1 euro c. $3 to 1 euro d. $4 to 1 euro
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.
A worker who has quit one job and is taking two weeks off before reporting to a new job is an example of
A. frictional unemployment. B. structural unemployment. C. cyclical unemployment. D. disguised unemployment.