Federal Reserve actions that increase nominal interest rates and decrease the money supply:
A. raise the rate of inflation.
B. raise bond prices.
C. close an expansionary gap.
D. close a recessionary gap.
Answer: C
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The more inelastic the schedule, the greater the percentage of the tax that is borne on the other side of the market
a. True b. False
If average labor productivity decreases, then the same number of employed workers will always produce:
A. more total output. B. less output per person. C. less total output. D. more output per person.
The mathematics of amortization for mortgage loans must utilize the
A. payment frequency. B. payment frequency and the period of time over which the debt will be repaid. C. period of time over which the debt will be repaid. D. structure of marginal tax rates.
The strategy of establishing a price that prevents the entry of new firms is called:
A. Cartel pricing B. Limit pricing C. Price leadership D. Profit maximizing price