A permanent negative supply shock leads to ________ real interest rates ________
A) higher; in both the short and long runs
B) higher; in the short run but not in the long run
C) lower; in both the short and long runs
D) lower; in the short run but not in the long run
A
You might also like to view...
The above figure shows the U.S. market for replacement cell phone batteries. Area E is the
A) producer surplus when there is free trade. B) deadweight loss from tariff. C) tariff revenue. D) increase in producer surplus due to the tariff. E) gain in total surplus due to the tariff.
Suppose a case of French wine has a price of 1,500 euros. To a U.S. wine importer, its price falls from $300 to $280. This could happen as a result of the dollar ___________ against the euro, which means the euro has a ____________ dollar price
A) depreciating; higher B) depreciating; lower C) appreciating; higher D) appreciating; lower
The proportion of the U.S. population below the poverty line
A. rises with upturns of the business cycle. B. has declined, though somewhat erratically, over the past 40 years. C. has been virtually eliminated by a vigorous "War on Poverty." D. covers roughly 20% of the same people year after year.
Fiscal policy involves which of the following?
A) interest rates B) tax policy C) buying and selling government-agency bonds D) none of the above