If there are no changes in inflation expectations, a sale of government bonds by the Fed in the open market will cause ________
A) both the federal funds rate and long-run expected real interest rate to rise
B) both the federal funds rate and long-run expected real interest rate to fall
C) the federal funds rate to fall and the long-run expected real interest rate to rise
D) the federal funds rate to rise and the long-run expected real interest rate to fall
A
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Refer to the below graph of the market for low-skilled labor. Sd is the supply of domestic resident workers, and St is the total supply of labor including undocumented workers. If there are illegal immigrants in the market, how many illegal immigrants will be employed?
A. 15M
B. 120M
C. 135M
D. 22M
The graph shows the labor market for apple pickers in Ohio. If the government sets a minimum wage of $5 an hour, ________ apple pickers are unemployed
A) 6,000 B) 8,000 C) 10,000 D) 14,000 E) more than 14,000
Which of the following is NOT a focus of the study of economics?
A) how individual preferences are formed B) unemployment C) inflation D) prices in particular markets
Suppose real GDP is $800 billion when the MPC is 0.80, and people decide to increase their saving by $30 billion. Before this change, the economy was in equilibrium with people intending to save $100 billion and producers intending to invest $100 billion. The new equilibrium level of real GDP is:
a. $600 billion. b. $650 billion. c. $680 billion. d. $730 billion. e. $800 billion.