If the Fed can ________ inflation expectations, it might achieve ________ inflation without ________ the unemployment rate
A) lower; lower; lowering
B) raise; lower; raising
C) lower; lower; raising
D) raise; higher; lowering
E) lower; higher; lowering
C
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A decrease in the real interest rate leads to
A) an increase in investment demand so that the demand for loanable funds curve shifts rightward. B) a fall in the capital stock. C) an increase in the expected profit. D) a movement downward along the demand for loanable funds curve.
The federal budget was in deficit from 1931 to 1939, except in the year 1937. Given this fact, how do you explain E
Cary Brown's statement, "Fiscal policy, then, seems to have been an unsuccessful recovery device in the 'thirties-not because it did not work, but because it was not tried."
When neo-Keynesians looked at 1970s–1980s inflation and unemployment data, they found
a. not a single Phillips curve, but a set of Phillips curves b. a relatively well-behaved downward-sloping Phillips curve c. a vertical Phillips curve, which helped to explain stagflation d. a Phillips curve that was very similar to the Phillips curve of the 1960s e. a Phillips curve that behaved like a Laffer curve
Assume Bryce's budget constraint is represented by line B in the graph shown. Which of the following would cause Bryce's budget constraint to shift to A?
A. The price of movie tickets increased. B. The price of books increased. C. The price of movie tickets decreased. D. The price of books decreased.