Easy monetary policy and tight fiscal policy lead to
A) high real interest rates.
B) low real interest rates.
C) roughly unchanged real interest rates.
D) roughly unchanged real interest rates only when Ricardian equivalence holds; otherwise, low real interest rates.
B
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In the DMP model, an increase in productivity does not
A) reduce the unemployment rate. B) increase the vacancy rate. C) increase labor market tightness. D) increase the size of the labor force.
A supply curve slopes downward because of the law of supply
a. True b. False Indicate whether the statement is true or false
Backorders occur when you do not have inventory in stock and your customer . . . ?
a. Switches to a different brand. b. Decides to keep their business with your organization and wait for the desired product. c. Cancels the order because she decides she has enough inventory all ready. d. Decides to take her future business elsewhere. e. Either A or D
Vipsana's Gyros House sells gyros. The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00. Vipsana pays her employees $60 per day. She also incurs a fixed cost of $120 per day. What is Vipsana's total cost per day when she does not
produce any gyros and does not hire any workers? A) $0 B) $2 C) $60 D) $120