Which of the following is likely in response to the policy initiative described in the In the News article titled "U.S. Federal Reserve Cuts Interest Rates to Historic Low"?
A. Home equity and home mortgage loans will dry up.
B. Bank lending will increase.
C. The unemployment rate will rise.
D. The inflation rate will fall in the long run.
Answer: B
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Which of the following statements is true?
A) Job search refers to the activities that workers undertake to find appropriate jobs. B) It is easier to find full-time suitable employment than to find seasonal part-time employment. C) In a competitive market, workers who demand a wage higher than the equilibrium wage rate are likely to get employed faster. D) Job search is normally a month-long process.
Banks create money when they make loans
a. True b. False Indicate whether the statement is true or false
For a very long time the country of Zeeland has had an inflation rate of 9%. Suddenly its inflation rate drops to 3%. The drop in the inflation rate
a. could be due to slower money supply growth. We would expect unemployment to be higher. b. could be due to slower money supply growth. We would expect unemployment to be lower. c. could be due to higher money supply growth. We would expect unemployment to be higher. d. could be due to higher money supply growth. We would expect unemployment to be lower.
The downward rigidity of wages as an explanation for the existence of unemployment is known as
A. crashing wages. B. sticky wages. C. locked wages. D. minimum wages.