When Fed Chairman Paul Volcker raised interest rates shortly after he became chairman in 1979, the effect was
A. an immediate and sharp decline in the value of the dollar.
B. a decade of economic decline for the United States.
C. a pair of severe recessions in 1980 and 1981-1982.
D. a rapid increase in the inflation rate.
Answer: C
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In the economy of Talikastan in 2015, exports were $200, GDP was $2000, government purchases were $200, imports were $270, and investment was $500 . What was Talikastan's consumption in 2015?
a. $830 b. $1230 c. $1370 d. $1770
If there were no fractional reserve banking, then:
A. banks would not create money in the economy. B. banks would not be able to create as much money as they desired. C. the reserve ratio must be 0 percent. D. there would be a very small amount of lending using deposits.
Suppose that ten years ago the dollar would buy 162 Japanese yen, but now the dollar will buy only 123 yen. Relative to the yen, over the past ten years the value of the dollar ________.
A. increased by about 24% B. increased by about 32% C. decreased by about 24% D. decreased by about 32%
If a product has a short-run elasticity of supply equal to zero, then an increase in the demand for the product will:
A. increase price and leave quantity sold unchanged. B. increase price and reduce the quantity sold to zero. C. have no effect on price or quantity sold. D. leave the price unchanged and reduce the quantity sold.