Chaletland should _____ interest rates during a recession and _____ interest rates during an economic boom in order to maintain long-run equilibrium.
A) Increase; increase
B) Decrease; decrease
C) Decrease; increase
D) Increase; decrease
Ans: C) Decrease; increase
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Benny, Denny, Jenny, Kenny, and Lenny are tap-dancing siblings who perform as the Tapiocas
Do to their individual dance styles, Benny and Denny each have a 50% chance of developing hammer toe, and Jenny, Kenny and Lenny each have a 20% chance of developing hammer toe. Each visit to the podiatrist costs $250. If each member of the Tapiocas were offered hammer toe insurance, how much would the premium be?
Refer to Table 27-1. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy
If Congress and the president want to keep real GDP at its potential level in 2017, they should A) increase the level of interest rates. B) decrease the money supply. C) decrease government purchases. D) decrease income taxes.
A union can influence the equilibrium wage rate by:
a. All of the answers are correct. b. lobbying for legislation to reduce immigration. c. collective bargaining. d. featherbedding.
All other things unchanged, we expect that a reduction in interest rates will tend to
A) increase the quantity of money demanded and increase velocity. B) increase the quantity of money demanded and reduce velocity C) reduce the quantity of money demanded and increase velocity. D) reduce the quantity of money demanded and reduce velocity.