If the Fed sells government securities, other interest rates ________ and then exchange rate ________
A) rise; does not change
B) fall; falls
C) do not change; rises
D) rise; falls
E) rise; rises
E
You might also like to view...
If the real interest rate in the domestic loanable funds market increases,
a. firms will have an added incentive to undertake investment projects. b. households will save less. c. the net inflow of foreign capital will tend to increase. d. it will be cheaper to purchase goods and services now rather than in the future.
The Great Recession began in ________ and ended in ________.
A. October 2008; December 2011 B. October 2008; June 2009 C. December 2007; June 2009 D. December 2007; December 2011
If supply increases and demand decreases, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.
A. lower; uncertain B. higher; higher C. lower; lower D. higher; uncertain
If the price of a good rises by 10% and the quantity purchased falls by 15%, then demand for the good is ________ and total spending on the good will ________
A) elastic; increase B) inelastic; increase C) elastic; decrease D) me and so inelastic; decrease