If the Fed lowers its target for the federal funds rate, this indicates that
a. the Fed is pursuing an expansionary monetary policy.
b. the Fed is pursuing a contractionary monetary policy.
c. the Fed is attempting to combat inflation.
d. the Fed is concerned that the growth in aggregate demand will exceed potential GDP.
a. the Fed is pursuing an expansionary monetary policy.
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One way people cope with uncertainty about the future is they:
A. avoid risks when it is reasonable to do so. B. only select risky alternatives if the expected value is twice as high as for a safe alternative. C. buy insurance. D. All of these are ways individuals cope with uncertainty.
Rising output coupled with falling prices is called stagflation.
Answer the following statement true (T) or false (F)
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
The point where the indifference curve is tangent to the budget line
A) is the best affordable point. B) is where the marginal rate of substitution exceeds the relative price by as much as possible. C) is a point on consumer's demand curve. D) All of the above answers are correct.