The Fed lowered interest rates in 2007 and 2008 . This implies, other things the same, that the Fed
a. increased the money supply because it was concerned about unemployment.
b. increased the money supply because it was concerned about inflation.
c. decreased the money supply because it was concerned about unemployment.
d. decreased the money supply because it was concerned about inflation.
a
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An individual anticipating rising interest rates is likely to hold more
A) money. B) real assets. C) stock. D) bonds.
Which of the following could lead to a decline in aggregate supply in the U.S.?
a. The discovery of new mineral deposits in Arizona b. Higher real wage rates in the U.S. c. Lower personal income in France d. Cutbacks in government borrowing e. Rapid depreciation of the Swiss franc
Which of the following would result from a tariff?
a. An increase in government budget deficit b. An increase in domestic production c. A greater volume of international trade d. Increased domestic consumption e. Decrease in prices of the imported goods
Environmental quality is
a. a public good. b. best improved through government's prohibiting externalities. c. maximized when costs of pollution are external. d. minimized when optimal levels of pollution are produced.