Refer to Figure 26-11. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, the Federal Reserve would most likely
A) decrease interest rates. B) not change interest rates.
C) decrease the inflation rate. D) increase interest rates.
A
Economics
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Costs imposed on future users of a resource are called
a. Transactions costs b. Social costs c. Private costs d. Depletion costs e. User costs
Economics
If the Fed buys government securities from the non-bank public, then
A) reserves at banks decrease. B) deposits at banks increase and banks' reserves increase. C) deposits at banks increase and banks' reserves decrease. D) loans at banks decrease. E) deposits at banks decrease and banks' reserves increase.
Economics