Even if the Fed attempts to control an asset bubble by raising interest rates to any reasonable degree, it is not clear that overly-optimistic investors would respond
a. True
b. False
A
You might also like to view...
Assume that in the market for bottled water, the market supply is QS = 14 + 20P and the market demand is QD = 74 – 10P. This means that the equilibrium quantity is
a. 2 b. 54 c. 6 d. none of the above
Consider a market in which there is an external benefit. The inefficient market equilibrium is such that
A) too little output is produced. B) too much output is produced. C) price is too high. D) marginal social cost is greater than marginal social benefit.
Which of the following countries is forbidden to impose export tariff by its constitution?
a. The United States b. Brazil c. United Kingdom d. Japan e. Mexico
When the Federal Reserve sells bonds as a part of a contractionary monetary? policy, there? is:
A. A decrease in the money supply and a decrease in interest rate B. A decrease in the money supply and an increase in interest rate C. An increase in the money supply and a decrease in interest rate