In 2005-2006, the Fed increased interest rates in an attempt to halt inflation. What was the most likely effect of raising interest rates on velocity?
a. It will decrease.
b. It will increase.
c. It will remain constant.
d. Velocity is unrelated to saving accounts.
b
You might also like to view...
If the United States government lowers the income taxes on the wealthiest Americans, while decreasing welfare payments to the poorest Americans, the result will likely be an _____ in efficiency and a ________ in equality in the United States.
Fill in the blank(s) with the appropriate word(s).
Refer to Figure 2-11. What is the opportunity cost of producing 1 bolt of cotton in Pakistan?
A) 3/8 of a pound of cashews B) 5/8 of a pound of cashews C) 1 3/5 pounds of cashews D) 150 pounds of cashews
Refer to Figure 2-12. Which country has a comparative advantage in the production of honey?
A) They have equal productive abilities. B) Tahiti C) Bora Bora D) neither country
First-price auctions have all the following properties EXCEPT
a. Highest bid wins b. Highest bidder pays the second highest bid c. The good is assigned to the highest bidder d. The price is set to the highest bid