When the Fed uses contractionary policy
A) it does not change the price level.
B) the price level rises less than it would if the Fed did not pursue policy.
C) it causes inflation.
D) the price level rises higher than it would if the Fed did not pursue policy.
B
You might also like to view...
According to the Institute for Economics and Peace (IEP), as of 2012, "were the world to reduce its expenditures on violence by _________ percent, it would be enough to provide the necessary money for the European stability fund, repay Greece's debt, and cover the increase in funding required to achieve the United Nation's Millennium Development Goals."
a) 10 b) 30 c) 15 d) 25
Refer to the table below. The average variable cost of producing 35 units of output is:
A. $6.00
B. $7.43
C. $4.57
D. $1.43
The comparison of after-tax income distribution among countries is difficult for all the following reasons except differences in
a. peoples' abilities b. tax systems c. government assistance programs d. cultures, for example preferences for leisure e. peoples' tolerance of income inequality
Which of the following firms is most likely to have market power?
a. a grocery store in a metropolitan area b. a convenience store in a suburb c. a pub in a college town d. the only gasoline station in a rural area