Which of the following has been the most likely effect of the Fed's credit policy?
A) Banks and other financial institutions have taken more time to recover from the 2008-2009 financial meltdown.
B) The scope of asymmetric information problems in the banking industry has reduced.
C) The money multiplier and the link between the money supply and the economy have become unstable.
D) The federal funds rate and the discount rate have dropped to negative levels.
C
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Other things remaining the same, the quantity of a good or service demanded will increase if the price of the good or service
A) rises. B) falls. C) does not change. D) rises or does not change. E) rises or falls.
Which of the following would cause a decrease in the equilibrium price and decrease in the equilibrium quantity of papayas?
A) a decrease in supply and a decrease in demand B) an increase in supply and an increase in demand greater than the increase in supply C) a decrease in supply and an increase in demand D) a decrease in demand
An increase in the level of structural unemployment will shift the long-run Phillips curve
Indicate whether the statement is true or false
Any increase in nonlabor income unambiguously leads to a decrease in consumption and a decrease in labor supply.
Answer the following statement true (T) or false (F)