Suppose the Fed purchases Treasury securities. Interest rates in the United States will ________ and the U.S. dollar will ________ against foreign currencies
A) decrease; depreciate B) increase; depreciate
C) decrease; appreciate D) increase; appreciate
A
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A temporary decline in productivity would cause the IS curve to
A) shift up and to the right. B) shift down and to the left. C) remain unchanged. D) shift up and to the right only if people face borrowing constraints.
Which of the following statements is true?
A. Demand-pull inflation is caused by insufficient total spending. B. Cost-push inflation is caused by an increase in resource costs. C. If nominal interest rates remain the same and the inflation rate rises, real interest rates increase. D. If real interest rates are positive, lenders incur losses.
The major country NOT to adopt the euro in the European Union is _______________.
Fill in the blank(s) with the appropriate word(s).
When consumers maximize utility, they are equating the ratio of marginal utility to price across all goods consumed.
Answer the following statement true (T) or false (F)