Advocates of activist policymaking point to the swift response of the Fed after September 11, 2001, as an example of effective policymaking.
Answer the following statement true (T) or false (F)
True
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Which of the following would not cause any kind of an outward shift of a nation's production possibilities curve [PPC]?
a. An improvement in the general level of education b. Technological innovation c. Discovery of a new source of energy d. An increase in the size of the labor force e. A flood that renders thousands of acres of farmland unusable
We generally expect the price elasticity of supply to be
A) zero. B) negative. C) positive. D) between -1 and +1.
Expansionary monetary policy:
A. lowers interest rates, increasing investment and decreasing net exports. B. raises interest rates, raising both investment and net exports. C. lowers interest rates, increasing both investment and net exports. D. raises interest rates, decreasing both investment and net exports.
The nominal interest rate will be less than the real interest rate when
A) the rate of inflation is negative. B) the real interest rate is negative. C) the rate of inflation is positive and increasing. D) the rate of inflation is positive but decreasing.