An inflation rate below the target rate will result in:
A. a movement down along the monetary policy reaction curve and a movement down the dynamic aggregate demand curve.
B. a movement up along the monetary policy reaction curve and a movement down the dynamic aggregate demand curve.
C. a movement up along the monetary policy reaction curve and a leftward shift of the dynamic aggregate demand curve.
D. a movement up along the monetary policy reaction curve and a rightward shift of the dynamic aggregate demand curve.
Answer: A
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a. 0% b. 10% c. 25% d. 35%
If the federal government's expenditures are less than its tax revenues, then
A) the budget is balanced. B) a budget surplus results. C) a budget deficit results. D) No conclusion can be drawn here regarding the budget surplus or deficit without information regarding government purchases versus other outlays.
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A. is both process- and outcome-oriented. B. is neither process- nor outcome-oriented. C. is not a process-oriented notion of equity. D. is not an outcome-oriented notion of equity.
An economic boom in the United States will tend to cause booms in other countries because as U.S. GDP rises, U.S.
A. tariffs will automatically fall. B. exports will rise. C. imports will rise. D. exports will fall.