If the Fed is trying to make the interest rates go down, it wants:
A. The money supply to decrease
B. The price level to decrease
C. Unemployment to decrease
D. Investment to decrease
C. Unemployment to decrease
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The income paid for the use of land is called
A) rent. B) wages. C) interest. D) land capital. E) profit.
In a demand-pull inflation, money wage rates rise because
A) a decrease in aggregate demand creates a labor shortage. B) an increase in aggregate demand creates a labor surplus. C) an increase in aggregate demand creates a labor shortage. D) a decrease in aggregate demand creates a labor surplus. E) an increase in aggregate supply creates a labor shortage.
What are the roles of Federal Reserve district banks?
What will be an ideal response?
Under adaptive expectations theory, people persistently:
a. underestimate inflation when it is slowing down. b. overestimate inflation when it is accelerating. c. underestimate inflation when it is accelerating. d. adapt to the prevailing inflation rate.