If the Fed were to reduce the legal reserve ratio, we would expect:
A. lower interest rates, an expanded GDP, and a higher rate of inflation.
B. lower interest rates, an expanded GDP, and a lower rate of inflation.
C. higher interest rates, a contracted GDP, and a higher rate of inflation.
D. higher interest rates, a contracted GDP, and a lower rate of inflation.
A. lower interest rates, an expanded GDP, and a higher rate of inflation.
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In the United States, the inflation rate since 1999 generally was
A) lower than between 1979 to 1981. B) higher than between 1979 to 1981. C) higher than in the 1980s. D) much higher than between 1985 to 1995. E) negative.
How can a country with a fixed nominal exchange rate, such as Greece, experience a lower real exchange rate?
A) by experiencing higher inflation than its partners B) by experiencing deflation if its partners have low inflation rates C) by limiting the growth of productivity D) by increasing wages at a faster rate than inflation
The idea that only the government can organize economic activity in a way that promotes economic well-being for a country as a whole
a. is a basic principle regarding individual decisionmaking. b. amounts to a denial of one of the basic principles regarding interactions among people. c. supports the idea that the "invisible hand" should guide economic activity. d. was promoted by the economist Adam Smith in a well-known 1776 book.
An advance in technology in the production of good X causes
A) a rightward shift in the supply curve for good X. B) a leftward shift in the supply curve for good X. C) the supply curve for good X to change from upward sloping to vertical. D) the supply curve for good X to change from vertical to upward sloping.