A downward shift in the Fed's policy reaction function is a(n) ________ of monetary policy, and the aggregate demand curve ________.
A. easing; shifts left
B. tightening; shifts left
C. tightening; shifts right
D. easing; shifts right
Answer: D
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If a consumer purchases only two goods (X and Y ) and the demand for X is elastic, then a rise in the price of X
a. will cause total spending on good Y to rise. b. will cause total spending on good Y to fall. c. will cause total spending on good Y to remain unchanged. d. will have an indeterminate effect on total spending on good Y.
The market supply of labor represents the sum of all individual labor supply decisions.
Answer the following statement true (T) or false (F)
If the MPC of an economy is 0.90 and the economy has a horizontal aggregate supply curve, then an increase in investment spending of $50 million will increase total income by
A. $50 million. B. more than $50 million but less than $500 million. C. $500 million. D. more than $500 million.
The above figure shows a labor market. Before the minimum wage of $8 an hour is imposed, employment equals ________ workers; after the minimum wage of $8 an hour is imposed, employment equals ________ workers
A) 80,000; 40,000 B) 40,000; 80,000 C) 60,000; 40,000 D) 60,000; 80,000 E) 80,000; 60,000