Changes in future expected interest rates can affect current consumption. Suppose individuals expect future interest rates to decrease. Consumption will change as a result of this lower expected future interest rate because of its effects on which of the following?
A) human wealth
B) the value of stocks
C) the value of bonds
D) all of the above
E) none of the above
D
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If ________ GDP exceeds ________ GDP, employment exceeds its full-employment level and the unemployment rate is ________ the natural unemployment rate
A) real; nominal; below B) real; potential; below C) real; potential; above D) nominal; potential; above E) nominal; potential; below
A decrease in U.S. interest rates will, other things equal, tend to: a. lower the foreign exchange value of the dollar. b. help U.S. exporters
c. cause a net outflow of capital from the U.S. d. do all of the above.
Explain the difference between a change in quantity supplied and a change in supply.
What will be an ideal response?
Refer to the information provided in Figure 26.5 below to answer the question(s) that follow.
Figure 26.5Refer to Figure 26.5. A decrease in the Z factors shifts the ________ to the ________.
A. IS curve; right B. Fed rule; left C. IS curve; left D. Fed rule; right