Stagflation occurs when short-run aggregate supply decreases

All exports of U.S. goods are considered credit items in the U.S. balance of payments

a. True b. False Indicate whether the statement is true or false

If the Fed wants to lower the interest rate, it will

a. buy bonds and decrease the money supply. b. buy bonds and increase the money supply. c. sell bonds and decrease the money supply. d. sell bonds and increase the money supply. e. sell bonds and decrease money demand.