If the Fed raises the interest rate, this will ________ inflation and ________ real GDP in the short run
A) reduce; lower B) reduce; raise C) increase; raise D) increase; lower
A
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Given the table above, the present value of lifetime resources ________ when the real interest rate rises to five percent
A) falls by $367 B) rises by $200 C) rises by $300 D) falls by $275
The demand curve for loanable funds is downward sloping because
a. people save more at higher interest rates. b. more investments are profitable at low interest rates than at high interest rates. c. future income is more valuable now at higher interest rates than at low interest rates. d. usury laws increase the quantity of funds demanded at low interest rates but do not affect the quantity of funds demanded at high interest rates.
Which one of the following would create a demand for a foreign currency and supply of dollars in the foreign exchange market?
a. the sale of U.S. automobiles to a Mexican consumer b. the spending by British tourists in the United States c. the purchase of 1,000 shares of IBM stock by a Latin American investor d. the purchase of Japanese televisions by an American distributor
Students of microeconomic principles often say they are going to study "tonight," because the only way to pass the exam is to study some every night. When "tonight" comes, some students choose to do something else. Come exam day, these students do not do well on their exam. This observation is an example of how people
a. are inconsistent over time. b. are consistent over time. c. are mainly interested in fairness. d. are rational.