All of the following help provide the basis for the Fed controlling the real interest rate in the IS-MP model EXCEPT
A) the Fed controls the federal funds rate through open market operations.
B) if expected future inflation remains stable, changes in nominal interest rates reflect changes in real interest rates.
C) short-term and long-term interest rates tend to move together.
D) the Fed's increased use of TIPS in conducting monetary policy.
D
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Keynes referred to the sharp, often irrational, changes in the outlook of investors as the ________ of investors
A) primal needs B) crowd psychology C) animal spirits D) chaotic behavior
If the demand is unit elastic, a price cut will leave the quantity demanded unchanged
Indicate whether the statement is true or false
One of the possible consequences of the expenditure schedule lying below the level of full employment GDP is
a. unemployment. b. rising prices. c. increasing production. d. decreasing inventories.
Net investment refers to:
What will be an ideal response?