If the Fed has a strong preference for stable prices relative to output, it responds to a price ________ with a ________ decrease in the interest rate.
A. increase; small
B. increase; large
C. decrease; large
D. decrease; small
Answer: C
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The demand for loanable funds curve illustrates
A) the quantity of loanable funds demanded at any given level of disposable income. B) how the quantity of loanable funds demanded changes when the people's expectations about their future income changes. C) how the quantity of loanable funds demanded changes when wealth changes. D) the quantity of loanable funds demanded at any given level of the real interest rate. E) the quantity of loanable funds supplied to the loanable funds market at any given level of disposable income.
Exhibit 36-3 Stock P-E ABC 18 XYZ 55 ? ? Refer to Exhibit 36-3. Which of the two stocks has a bigger gap between its close price and net earnings per share?
A. Stock ABC B. Stock XYZ C. Both stocks have the same gap between its close price and net earnings per share D. There is not enough information provided to answer the question.
Evidence shows that flexible exchange rates have created a destabilizing speculation in the foreign exchange market
Indicate whether the statement is true or false
Individuals who lease a new car
A) have a higher discount rate than those who buy. B) have a lower discount rate than those who buy. C) have the same discount rate as those who buy. D) behave irrationally and are taken advantage of by car companies.