If the Fed unexpectedly shifts to a more restrictive monetary policy, which of the following will most likely occur in the short run?
a. a decrease in the real interest rate
b. an increase in unemployment
c. an increase in real GDP
d. an increase in inflation
B
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Use the following table to answer the question below.(1)(2)(3)(4)(5)QdQdPriceQsQs5040$1070806050960708060850609070740501008063040Suppose that market demand is represented by two demanders in columns (1) and (2) and market supply is represented by two suppliers in columns (4) and (5). If the price were artificially set at $9
A. a surplus of 20 units would occur. B. demand would change from columns (3) and (2) to columns (3) and (1). C. the market would clear. D. a shortage of 20 units would occur.
Which of the following creates difficulties in making comparisons of real GDP across nations?
A) Each nation has a different population. B) Relative prices differ sharply across countries. C) Nations produce different goods and services. D) Nations often have different languages.
The buyer of a derivative is _______ assuming risk relative to the seller.
A. more comfortable B. less comfortable C. just as comfortable D. less open to
The "vicious circle of poverty" for developing nations can best be described by:
A. Low levels of international trade that reduce exports and increase the dependence on imports B. Low incomes that inhibit saving and the accumulation of real and human capital, making it difficult to increase productivity and income C. A large government sector which reduces the availability of private investment spending but which increases macroeconomic stability D. A lack of entrepreneurial talent that limits the formation of businesses and the development of private businesses