Suppose that the demand for money increases as people anticipate upcoming economic problems. To offset this increase in money demand, the Fed should ________ the money supply, which would put ________ pressure on nominal interest rates.
A. increase; upward
B. decrease; downward
C. decrease; upward
D. increase; downward
Answer: D
Economics
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One reason stagflation is difficult to recover from is because:
A. wages are sticky downward. B. input prices increase with output prices. C. less output requires less inputs to be hired. D. prices tend to adjust more quickly downward than upward.
Economics
If the reserve ratio is .20, the money multiplier can be as high as
A. 20. B. 10. C. 5. D. 50.
Economics
Refer to the figure below. At a price of $2, the total expenditure on lattes each hour equals: 
A. $60. B. $80. C. $30. D. $40.
Economics
Economists and accountants use the same definition of profit.
Answer the following statement true (T) or false (F)
Economics