Which of the following prevented the Fed from reducing long-term real interest rates during the Financial Crisis of 2007-2009?
A) an increase in expected inflation
B) an increase in the risk premium
C) the collapse in the housing market
D) the failure of the federal funds rate to respond to monetary policy
B
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The EPA’s database of identified environmental hazards is known by the acronym
a. IRIS c. RISK b. ISIS d. IPCC
In the classical model, what is the result of an increase in aggregate demand?
A) The price level increases, and real GDP remains constant. B) The price level decreases, and real GDP remains constant. C) Real GDP increases, and the price level remains constant. D) Real GDP decreases, and the price level remains constant.
Suppose a nation's population grows by 2 percent and, at the same time, its GDP grows by 5 percent. Approximately how fast will real GDP per person increase?
A) 3 percent per year B) 2 percent per year C) 5 percent per year D) 10 percent per year
The above figure gives your budget line between CDs and magazines. Which of the following changes would NOT allow you to buy more CDs?
A) a decrease in the relative price of CDs B) an increase in income C) a decrease in the price of magazines with no change in the price of CDs D) None of the above answers is correct because all of the above changes allow you to buy more CDs.