When the Fed targets interest rates, rightward shifts in the IS curve force the Fed to ________ the money supply to hold to that target, which acts to ________ velocity
A) raise, destabilize
B) raise, stabilize
C) lower, destabilize
D) lower, stabilize
B
You might also like to view...
A family purchases a package of sandwich buns at a supermarket. Are those buns considered a "final" good?
A) No, because they are an intermediate ingredient in the actual final good: sandwiches. B) Yes, if the family eats them and does not sell the sandwiches made from them. C) No, because the supermarket bought the finished buns, so they are "used" goods by the time the family buys them. D) Yes, for so long as it is sold on the market it is a final good.
The gross replacement rate is
A. the proportion of pretax earnings replaced by unemployment insurance. B. a rate of employment in key sectors of the economy. C. the percentage of each paycheck that is removed for unemployment insurance. D. the rate that tax receipts are used to cover tax expenditures. E. none of these answer options are correct.
Translating the preferences of each individual into the preferences of the group is _____
a. a challenge faced only by clubs b. a challenge faced by all collective decision making organizations c. inherent in all decision making d. a challenge faced only by government
Which of the following does not contribute to differences in interest rates?
a. Different loans are for different periods of time. b. Large loans generate more administrative costs per dollar than smaller loans. c. Different loans are subject to different tax rules. d. Loans to established businesses are evaluated differently from loans to new businesses. e. The longer the period of repayment, the greater the risk of higher-than-expected inflation.