The Fed's strategy of increasing the money supply and lowering interest rates in order to increase real GDP is called

A. Contractionary fiscal policy
B. Expansionary monetary policy
C. Expansionary fiscal policy


B. Expansionary monetary policy

Economics

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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as

A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward

Economics

If a firm reacts to other firms' market decisions by anticipating how the other will then react, this is:

a. not profit-maximizing behavior b. a monopolistic competitive market c. a market with a low concentration ratio d. mutual interdependence e. collusion by definition

Economics

In economics, secondary effects refer to the

What will be an ideal response?

Economics

A game in which the first player has the power to confront the second player with a take-it-or-leave-it offer is the:

A. repeated prisoner's dilemma. B. ultimatum bargaining game. C. matching pennies game. D. Nash bargaining game.

Economics