Refer to Figure 17-1. Suppose that the economy is currently at point A, and the unemployment rate at A is the natural rate. What policy would the Federal Reserve pursue if it wanted the economy to move to point B in the long run?
A) Sell treasury bills.
B) Raise the discount rate.
C) Decrease the money supply.
D) Buy treasury bills.
E) No policy will move the economy to point B in the long run.
E
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Which of the following is a pure public good?
a. cable TV service b. fire protection c. a fireworks display d. corn flakes e. higher education
The manager of View Your World, a high-end window manufacturer, notices that the cost to distribute their windows in the spot market has fallen. As a result of the change, which of the following is true?
A) The manager has more of an incentive to integrate backward. B) The manager has less of an incentive to integrate backward. C) The manager has more of an incentive to integrate forward. D) The manager has less of an incentive to integrate forward.