If inflation increases, one would expect that the Fed would:
A. reintroduce unconventional policy.
B. wind down unconventional policy more slowly.
C. change unconventional policy to conventional policy.
D. wind down unconventional policy more quickly.
Answer: D
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The percentage of income that Americans save each year ________
A) is much higher than the percentage the Chinese citizens save B) is higher than the saving rate of most industrialized countries C) is lower than the saving rate of most industrialized countries D) increased by a factor of five every year since the 1970s E) none of the above
At an interest rate of 8.25% compounded annually, what is the present discounted value of $2,000 to be received 2 years from now?
A. $1670.00 B. $1706.77 C. $1716.74 D. $1835.00
The optimal amount of studying is determined by comparing:
A. total benefit and the total cost of studying. B. marginal benefit and the total benefit of studying. C. marginal benefit and the total cost of studying. D. marginal benefit and the marginal cost of studying.
Refer to the information provided in Figure 6.7 below to answer the question(s) that follow.
Figure 6.7Refer to Figure 6.7. Along budget constraint AB, the price of good X is $25 and the price of good Y is $18. If the price of Y decreases to $14, the budget constraint will
A. pivot in at point B. B. pivot in at point A. C. shift in parallel to AB. D. pivot out at point A.