Since 1970, the Fed generally ________ the interest rate when inflation was ________.
A. raised; low
B. raised; high
C. lowered; high
D. The Fed has maintained a stable interest rate since 1970.
Answer: B
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The pricing rule for a monopolist is:
A) P = MR > MC. B) P > MR > MC. C) P = MR = MC. D) P > MR = MC.
What was the purpose of the stress test administered by the Treasury in 2009?
A) Evaluate potential losses of Fannie Mae and Freddie Mac. B) Assess the viability of AIG. C) Gauge how well the largest financial firms would fare if the recession deepened. D) Evaluate the solvency of the major investment banks.
Other things being equal, the effects of an increase in the price of orange juice would best be represented by a(n):
a. upward movement along the demand curve for orange juice. b. leftward shift in the demand curve for orange juice. c. downward movement along the demand curve for orange juice. d. rightward shift in the demand curve for orange juice.
If a demand curve is perfectly inelastic then:
(a) The elasticity coefficient is equal to infinity; (b) The demand curve for the good is vertical; (c) The elasticity coefficient is equal to zero; (d) Both (b) and (c) above are correct.