If the Fed wants to lower the nominal interest rate in the long run, the Fed ________ the growth rate of the quantity of money
A) raises
B) first lowers and then raises
C) lowers
D) does not change
E) None of the above answers is correct because the premise of the question is wrong since the Fed cannot affect the nominal interest rate, only the real interest rate.
C
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Which of the following groups were least likely to support restrictions on immigration?
a. Organizations like the Ku Klux Klan. b. Unionized labor. c. Employers. d. The south.
Utility possibility frontier shows:
a. the possible combinations of utility that an efficient bargain can get the negotiating parties. b. the exact bargain at which the negotiating parties eventually arrive. c. the highest utility each negotiating party can individually achieve. d. the possible combinations that maximize payoffs to the negotiating parties.
The three functions of money are:
A. serving as a medium of exchange, unit of account, and store of value. B. implementing monetary policy, fiscal policy, and structural policy. C. spending for consumption, investment, and government purchases. D. measuring balance of payments, exchange rates, and interest rates.
What factor might lead to the opening of several new pizzerias in a town?
(A) The supply of pizza is inelastic. (B) The price of a slice of pizza has gone up. (C) The price of a slice of pizza has gone down. (D) The cost of producing pizza has doubled.