Which of the following represents the effects in period t of an increase in the saving rate in period t?
A) no change in K/N
B) no change in Y/N
C) a reduction in C/N
D) all of the above
D
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The Federal Reserve influences the level of interest rates in the short run by changing the
A) demand for money through changes in reserve requirements. B) supply of money through open market operations. C) supply of money through changes in stock market operations. D) demand for money through open market operations.
Suppose the money demand function is given by Md/P = 640 + 0.1Y - 5000 (r + ?e). Suppose the central bank changes the nominal money supply depending on income and inflation: Ms = 1000 + 0.1Y - 4000?
(a) If expected inflation equals actual inflation = 0.03, Y = 1000, and r = 0.02, calculate the price level. (b) If inflation rises to 0.04 while the other variables remain as in part a, calculate the price level. (c) If expected inflation rises to 0.04 while the other variables remain as in part a, calculate the price level. (d) If the real interest rate rises to 0.03 while the other variables remain as in part a, calculate the price level.
Use the concept of diminishing marginal utility to explain why we would be more likely to see an all you can eat pizza buffet rather than an all you can carry sunglass "buffet."
The longest economic expansion on record lasted
A. almost five years. B. almost six years. C. nine years. D. ten years.