Under a k-percent rule, if the economy goes into expansion, the Fed would
A) increase the quantity of money.
B) raise the federal funds rate.
C) lower tax rates to keep revenue constant.
D) lower the federal funds rate.
E) None of the above answers is correct.
E
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Explain how discretionary monetary policy may have brought about the end of the Great Moderation and ushered in the Great Recession
What will be an ideal response?
Consider the production possibilities frontier displayed in the figure shown. Which points are efficient and attainable with existing resources?
A. Only point B.
B. Only point A.
C. Points A and D.
D. Points A, C, and D.
In a monopolistic competitive industry, short-run economic profit encourages entry of new firms until there are no economic profits in the long-run
a. True b. False Indicate whether the statement is true or false
U.S. exports, foreign travel in the U.S., and foreign capital inflow into the U.S. give rise to
A. a supply of foreign currencies. B. a demand for foreign currencies. C. a lower value of the U.S. dollar. D. decreased foreign exchange reserves in the U.S.