As the Fed lowers the federal funds rate,
A) the price level falls.
B) real GDP decreases.
C) aggregate demand increases.
D) aggregate supply increases.
E) aggregate income decreases.
C
You might also like to view...
The Washington Consensus refers to
a. agreements between Republicans and Democrats b. guidelines for limiting government intervention, supported by the World Bank andInternational Monetary Fund c. the agreement as to where to locate the U.S. government d. guidelines for providing U.S. aid to developing-country governments e. guidelines for providing federal aid to state and local governments
According to the survivor principle
A) firms will get taken over by their larger rivals over time. B) only firms that maximize profits survive in highly competitive markets. C) managers only work hard if they are threatened with their survival at the firm. D) eventually all firms merge to become one large monopoly.
Game theory is:
A. the study of how people behave strategically under different circumstances. B. used by economists to evaluate behavior in a variety of settings. C. a useful tool in predicting strategic behavior. D. All of these statements are true.
What group is committed to lowering trade barriers between nations?
a. United Nations b. European Union c. World Trade Organization d. OPEC