Generally, if the inflation rate is too high, the Federal Reserve will want to raise the federal funds rate.
Answer the following statement true (T) or false (F)
True
Raising the federal funds rate will tend to lower the money supply and lower the inflation rate.
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Government can overcome the free rider problem by collecting taxes and using the funds to provide individuals with nonexcludable public goods that they want to buy but the market cannot provide.
Answer the following statement true (T) or false (F)
One worker produces 10 rocking chairs. If diminishing returns have already set in, a firm will need to hire more than two workers to produce 20 rocking chairs.
Answer the following statement true (T) or false (F)
Refer to Figure 24-2. Ceteris paribus, a decrease in the expected price of an important natural resource would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
Increases in the duration of unemployment may
A) reflect a general downturn in economic activity that depresses job openings. B) increase the number of discouraged workers. C) increase the unemployment rate. D) all of the above.