If the price of inputs rises and foreign income rises:
a. Price index rises, and real GDP falls.
b. Price index rises, and the change in real GDP is uncertain.
c. Price index falls, and real GDP rises.
d. Price index falls, and real GDP falls.
e. Price index falls, and the change in real GDP is uncertain.
.B
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When the European System of Central Banks uses long-term refinancing operations, it is similar to the Federal Reserve using
A) dynamic open market operations. B) defensive open market operations. C) discount policy. D) reserve requirements.
If there was only full-reserve banking:
A. the financial system would work better. B. absolutely no lending using deposits would be able to occur. C. banks would make more money lending deposits. D. The money multiplier would be at maximum.
If a central bank announced that it was going to decrease inflation by 5%, people revised their inflation expectations downward by 4%, and the central bank only lowered inflation by 1%, the short run Phillips curve would shift
a. right and unemployment would rise. b. right and unemployment would fall. c. left and unemployment would rise. d. left and unemployment would fall.
A decrease in quantity and price is consistent with a:
A. leftward shift in supply keeping demand constant. B. rightward shift in demand and a leftward shift in supply. C. leftward shift in demand keeping supply constant. D. rightward shift in supply and demand.