Assume the central bank lowers the discount rate. What is the net effect on the unemployment rate (assume fixed exchange rates)? Answer assuming all the adjustments have worked their way through the macroeconomic system, and it is in equilibrium
a. The unemployment rate rises.
b. The unemployment rate falls.
c. The unemployment is not affected.
d. The change in the unemployment rate depends on the degree of international capital mobility.
.C
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The National Recovery Administration (NRA) of 1933–35 attempted to restore market competition within U.S. domestic and international markets
Indicate whether the statement is true or false
Other things equal, an increase in aggregate spending tends to be associated with:
a. cost-push inflation. b. an economic depression. c. a lower level of equilibrium real GDP. d. demand-pull inflation. e. an increase in the quality of goods and services produced.
A regulatory policy under which the government picks the point on the demand curve at which price equals average cost is known as:
A. average-cost pricing. B. marginal-cost pricing. C. average-revenue pricing. D. competitive pricing.
The marginal rate of substitution is the
A. change in the quantity of one good that just offsets a one-unit change in the consumption of another good such that the total satisfaction remains constant. B. same thing as the marginal utility of a good. C. rate at which the consumer can exchange one good for the other. D. change in the quantity of one good that changes the utility received by one unit.