The Fisher effect ________

A) comes from combining the Fisher equation and the classical dichotomy
B) predicts that in the long run nominal rates will rise with increases in expected inflation
C) shows that in high inflation we typically see high nominal interest rates
D) all of the above
E) none of the above


D

Economics

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During the turmoil in the market for subprime mortgages in 2007 and 2008, the Fed increased the volume of discount loans. The goal of the Fed was to

A) reassure financial markets and promote financial stability. B) stimulate economic growth. C) reduce unemployment. D) reduce the rate of inflation. E) reduce the current account deficit.

Economics

Why might spending on basic literacy for girls have a social return that exceeds the private return?

What will be an ideal response?

Economics

Suppose the economy's production function is Y = AK0.3N0.7. If K = 2000, N = 100, and A = 1, then Y = 246. If A rises by 10 percent, and K and N are unchanged, by how much does Y increase?

A) 5% B) 10% C) 15% D) 20%

Economics

Physical objects are rival in the sense that ________

A) they are necessarily in opposition to one another B) they are nontrivial C) when they are used in one activity, they cannot be used in another D) some countries possess natural resources, e.g. oil, while some do not

Economics