A decrease in money supply causes the real interest rate to ________ and output to ________ in the short run, before prices adjust to restore equilibrium
A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall
B
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Refer to Figure 24-3. Suppose the economy is at point C. If government spending decreases in the economy, where will the eventual long-run equilibrium be?
A) A B) B C) C D) D
Which of the following groups agree that government intervention in the economy is counterproductive even in the short run?
a. Keynesians and supply-siders b. Keynesians and neo-Keynesians c. Keynesians and rational expectations economists d. neo-Keynesians and rational expectations economists e. Rational expectations economists
If the Fed begins an expansionary policy, which of the following examples would counteract that policy?
a. European banks significantly reduce the number of loans they issue. b. A bank in Milwaukee increases the number of loans it issues. c. An Brazilian insurance company maintains the same loan policy. d. A bank in Jacksonville increases the number of borrowers by 5 percent.
The Federal Trade Commission was given the power to issue "cease-and-desist" orders where it found behavior to violate antitrust laws.
Answer the following statement true (T) or false (F)