If the Federal Reserve conducts open market ________, the money supply ________, shifting the LM curve to the right, everything else held constant
A) purchases; decreases
B) sales; decreases
C) purchases; increases
D) sales; increases
C
You might also like to view...
In a perfectly competitive market, if P < MC, then
A) too little output is being produced. B) too much output is being produced. C) production is efficient, as the firm is earning profits. D) the firm is paying a price for resources that is too high.
A social cost that is NOT fully paid by the individual using an automobile is
A. traffic congestion. B. depreciation of the vehicle. C. gasoline and oil. D. insurance.
When a shift in aggregate demand occurs, the effect will be divided between a change in output and a change in price level. How the effect is divided depends on the
a. amount of inflation in the economy. b. slope of the SRAS curve. c. size of the multiplier. d. position of the AE curve. e. slope of the AD curve.
Suppose oil prices suddenly begin to rise and the Fed announces that the increase in oil prices are not expected to generate excessive inflation
If the Fed is incorrect in its assumption that rising oil prices will not generate excessive inflation and the inflation rate increases before the Fed takes corrective action, then other things equal, this would result in ________ and ________. A) the IS curve shifting to the right; a movement up the Phillips curve B) the IS curve shifting to the left; a movement down the Phillips curve C) the MP curve shifting up; a movement up the Phillips curve D) the MP curve shifting down; a movement down the Phillips curve