Suppose the Fed decreases the money supply. In response households and firms will ________ short term assets and this will drive ________ interest rates
A) sell; down B) buy; down C) sell; up D) buy; up
C
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Mary has decided that the she does not like Iowa and has decided to quit her job as a medical technician and move to Arizona. Mary's unemployment as she searches for a new job is best classified as
A) traveling. B) structural. C) frictional. D) distance. E) cyclical.
The sacrifice ratio measures ______.
a. the amount of output lost when inflation is increased by one percent b. the amount of output lost when inflation is decreased by one percent c. the number of jobs lost when output is decreased by one percent d. the number of jobs lost when output is increased by one percent
Under perfect competition
A. many firms produce differentiated products. B. prices are determined by the market and there are no price makers. C. a few firms have an influence over price. D. None of the choices are correct under perfect competition.
Bananas and apples are substitutes. When the price of bananas rises, and a technological advance in apple production occurs at the same time:
A. the equilibrium price of apples rises and the equilibrium quantity of apples falls. B. the equilibrium price of apples rises and the equilibrium quantity of apples rises. C. the equilibrium price of apples rises and the equilibrium quantity of apples might rise or fall. D. the equilibrium quantity of apples rises and the equilibrium price of apples might rise or fall.