The FOMC is concerned about inflation and has ________ the federal funds rate. Due to substitution effects, other ________ interest rates will ________ almost immediately
A) increased; short-term; increase
B) decreased; short-term; decrease
C) increased; long-term; increase
D) decreased; long-term; decrease
E) increased; short-term; decrease
A
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The aggregate demand curve will shift rightward when there is:
a. a decrease in government spending. b. a decrease in incomes abroad. c. a tax increase. d. the expectation that future consumer income will rise.
The price of a stock will increase, ceteris paribus, when
A. The supply of the stock increases. B. Future earnings expectations increase. C. The interest rate increases. D. There is a surplus of the stock at the current price.
Opportunity cost is a theoretical concept with no practical application.
Answer the following statement true (T) or false (F)
Empirical evidence indicates that higher real interest rates lead to ________ in savings.
A. modest decreases B. no change in C. substantial increases D. modest increases