Beyond the Fed's immediate control, a wave of pessimistic economic forecasts in the banking industry can effectively ________ e and thus ________ the money supply
A) raise, raise
B) raise, reduce
C) reduce, raise
D) reduce, reduce
B
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A movement up along a supply curve indicates:
a. a rise in supply. b. an increase in the quantity supplied. c. an increase in the sales tax on a good. d. a reaction by suppliers to a decrease in demand.
Refer to Figure 28-5. Consider the Phillips curves shown in the above graph. We can conclude from this graph that
A) ceteris paribus, a fall in the rate of inflation to 5 percent will increase unemployment to 7.5 percent in the short run. B) the natural rate of unemployment in this economy is 5.5 percent. C) the expected rate of inflation in this economy is 10 percent. D) All of the above are correct.
Other things being equal, if input prices rise in a country, then there would be
A) cost-push inflation. B) demand-pull inflation. C) cost-push deflation. D) more production and a lower price level.
The consumption function has two components: (1) consumption that depends on the level of income and (2)
a. permanent consumption b. transitory consumption c. autonomous consumption d. automatic consumption e. expected consumption