If the Fed raises the interest rate, this will ______ inflation and ______ real GDP in the short run.
a. reduce; raise
b. increase; lower
c. increase; raise
d. reduce; lower
d. reduce; lower
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Workers are generally in a better position to protect themselves from inflation in comparison to retired persons because workers' incomes
a. are more likely to be fixed. b. are more likely to be variable. c. always rise during inflation. d. are guaranteed by the federal government.
In its role as the bankers' bank, a central bank performs each of the following, except:
A. providing deposit insurance. B. managing the payments system. C. overseeing commercial banks and the financial system. D. providing loans during times of financial distress.
Unit banks are:
A. more numerous in the United States than they were in previous decades. B. banks with no branches. C. commercial banks that have combined into one unit with an investment bank. D. no longer permitted to exist in the United States.
The 2001 terrorist attack reduced U.S. aggregate supply in part because it led to
A. lower oil prices. B. more powerful labor unions in private industry. C. higher insurance premiums. D. a decline in consumer confidence.