An unexpected rise in Retail Sales should send bond prices __________ and stock prices __________
A) up; up
B) up; down
C) down; up
D) down; down
C
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If the inflation rate target is 2%, the current inflation rate is 3%, and the output gap is 2%, then according to the Taylor rule, the nominal federal funds rate should be ________ percent
A) 4.5 B) 7 C) 6.5 D) 5.5 E) none of the above
A union requirement that a fireman has to be hired to work in a diesel locomotive would be an example of
A) work expansion. B) featherbedding. C) work requirements. D) work stabilization.
The purpose of fiscal policy should be to
A. balance the budget to be fiscally responsible. B. balance aggregate supply and aggregate demand. C. keep taxes low to keep voters happy. D. minimize government spending to avoid wasting money.
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were open to free trade, how many units would be exported?
A. 85 B. 120 C. 75 D. 35