When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline
B. increase; raise; decline
C. decline; lower; expand
D. decline; raise; decline
Answer: C
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Which of the following statements regarding checkable deposits is most accurate?
A. Checkable deposits are a less important source of bank funds today than in 1970. B. Checkable deposits are no longer a source of bank funds. C. Checkable deposits continue to be the largest source of bank funds. D. Checkable deposits are a larger source of bank funds today than in 1970.
Under the original Gramm-Rudman-Hollings Act, a congressionally enacted budget deficit that was larger than the targeted amount would
A. result in both automatic tax cuts and spending increases. B. result in automatic spending cuts. C. result in automatic tax cuts. D. result in automatic spending increases.
The short-run average total cost, average variable cost, and marginal cost curves are all U-shaped because of
i. constant total fixed cost. ii. increasing and then decreasing marginal returns as more labor is hired. iii. economies and diseconomies of scale as the plant size increases. A) only i B) only ii C) i and iii D) ii and iii E) i, ii, and iii
Article 102 of the Treaty on the Functioning of the European Union (TFEU) prohibits a dominant firm from doing all of the following except which one?
A) placing trading partners at a competitive disadvantage by practicing price discrimination B) charging an unfair price C) limiting or controlling production in markets through market division D) buying at a price that is unfairly low