In the quantity equation framework for understanding the determinants of long-run inflation, a rise in government spending ________ velocity, putting ________ pressure on inflation
A) raises, upward
B) raises, downward
C) lowers, upward
D) lowers, downward
A
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If the market price of a product increases, then the total
A) consumer surplus will decrease. B) consumer surplus will increase. C) revenues of sellers will definitely increase. D) revenues of sellers will definitely decrease.
Explain why the Fed making more discount loans to banks, or an open market purchase, or an increase in foreign exchange reserves all have the same effect on its balance sheet. What is that effect on the monetary base?
What will be an ideal response?
Quantitative easing involves all of the following except:
A. higher asset prices. B. Lower long-term interest rates. C. higher long-term interest rates. D. Purchasing longer-term bonds.
Specialization and trade allow an economy to expand its:
A. production possibilities. B. consumption possibilities. C. technological advantage. D. absolute advantage.