To stabilize real GDP when the money demand curve shifts up on its own, the Fed must increase the money supply
a. True
b. False
A
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The game in the figure is shown using a:
This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts. Both companies are trying to decide whether or not to expand in an area. The area can handle only one of them expanding, and whoever expands will cause the other to lose some business. If they both expand, the market will be saturated, and neither company will do well. The payoffs are the additional profits (or losses) they will earn.
A. decision tree.
B. decision matrix.
C. flowchart.
D. graph.
When the actual rate of unemployment is less than the natural rate of unemployment, the economy
a. operates at an output greater than its long-run potential. b. operates at its maximum sustainable output. c. must also be experiencing stable prices (zero inflation). d. operates at an output less than its long-run potential.
Recent forest fires in the western states are expected to cause the price of lumber to rise in the next six months. As a result, we can expect the supply of lumber to
a. fall in six months but not now. b. increase in six months when the price goes up. c. fall now. d. increase now to meet as much demand as possible.
The IMF often requires countries that borrow from it to introduce policies that privatize government-owned industries such as telecommunications and power generation. This is an example of:
A. limited capital account convertibility. B. infrastructure investment. C. a balance of payments constraint. D. conditionality.