A decrease in the federal funds rate leads to..
What will be an ideal response?
An increase in the quantity of money, a fall in the exchange rate, an increase in exports
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The size of the expenditure multiplier is influenced by
i. the marginal propensity to consume. ii. autonomous spending. iii. the marginal tax rate. A) i only B) ii only C) iii only D) i and iii E) ii and iii
Between September 2013 and September 2014 the number of economic part-time workers decreased from 7.9 million to 7.1 million. Assuming the change resulted from economic part-time workers transitioning to full-time jobs, this change created
A) no change to the U-3 unemployment rate. B) a decrease to the U-3 unemployment rate. C) an increase to the U-3 unemployment rate. D) an increase in the employment-to-population ratio.
The law of demand is graphically depicted as a(n)
a. vertical demand curve b. horizontal demand curve c. downward-sloping demand curve d. upward-sloping demand curve e. curved demand line
Contrast the actions the central bank of a country would take to increase the quantity of money in an economy with the actions it would take to produce the opposite effect