If the Federal Reserve conducts open market sales, the money supply ________, shifting the LM curve to the ________, everything else held constant
A) decreases; right
B) decreases; left
C) increases; right
D) increases; left
B
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Yasukichi Yasuba's research suggests that the decline in the U.S. fertility rate in the antebellum period was due to
a. rising land prices. b. people marrying later in life. c. rising manufacturing wages. d. a high percentage of young males and a low percentage of young females in the population.
If the marginal benefit were greater than the cost of a good:
A. consumers could increase their utility by buying more. B. consumers could increase their utility by buying less. C. producers should decrease production. D. social net benefit would be maximized.
Identify the correct formula for the GDP price index
a. Normal GDP x 100Real Prices b. Real Prices x 100Nominal GDP c.Nominal GDP x 100Real GDP d.Real GDP x 100Nominal GDP
Suppose the equilibrium real federal funds rate is 3 percent, the target rate of inflation is 3 percent, the current inflation rate is 1 percent, and real GDP is 8 percent below potential real GDP. If the weights for the inflation gap and the output gap
are both 1/2, then according to the Taylor rule the federal funds target rate equals A) -3 percent. B) -1 percent. C) 3.5 percent. D) 7 percent.