The prices of stocks and bonds move
a. in opposite directions to the Fed's interest rate target
b. in opposite directions to the spending patterns of Congress
c. in similar directions to the Fed's interest rate targets
d. in similar directions to the spending patterns of Congress
e. whenever the Open Market Committee threatens a change in the money supply
A
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Suppose the economy is at full employment and firms become more pessimistic about the future profitability of new investment. Which of the following will happen in the short run?
A) The aggregate demand curve will shift to the right. B) Unemployment will rise. C) Prices will rise. D) Output will rise.
Reverse causation is the idea that
A) current increases in output cause future increases in the money supply. B) current increases in the money supply cause future increases in output. C) expected future increases in the money supply cause increases in current output. D) expected future increases in output cause increases in the current money supply.