The Fed will raise the interest rate by the greatest amount when the economy is on the ________ part of the AS curve and there is ________.
A. flat; an increase in government spending
B. flat; a decrease in government spending
C. steep; an increase in government spending
D. steep; a decrease in government spending
Answer: C
You might also like to view...
Why do landlords tend to discriminate against a person's race, religion, or age more when rent controls are imposed?
A) Landlords are naturally racist and bigoted. B) Only minority groups will take an interest in apartments with controlled rents. C) Economists will encourage landlords to discriminate. D) Rent controls lower the personal costs of discriminatory behavior among landlords. E) For all of the above reasons.
The quantity theory of money asserts that inflation is the result of growth in
A) the quantity of money. B) potential GDP. C) the natural rate of unemployment. D) money wage rates.
The largest part of gross domestic product in the United States is
a. investment. b. consumption. c. government expenditure. d. trade balance.
Which of the following is true for the world as a whole?
a. During the past 200 years, the income per person of the world has increased sharply, but there has been little change in the years of life expectancy at birth. b. During the past 200 years, the years of life expectancy at birth has increased sharply, but there has been little change in the world's income per person. c. During the 800 years between 1000 and 1800, the increases in both world income per person and life expectancy at birth were small, but both of these indicators have increased sharply during the past 200 years. d. Both income per person and life expectancy rose steadily during 1000-1800, but neither of these indicators have increased much during the past 200 years as the population of the world has become larger and larger.