Which of the following policies would be most effective in the flat part of the SRAS demand curve?
a. The Fed decreases the money supply by 3 percent.
b. The Fed decreases the money supply by 10 percent.
c. The Fed increases the money supply by 3 percent.
d. The Fed increases the money supply by 10 percent.
d. The Fed increases the money supply by 10 percent.
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The figure above represents the competitive market for slices of key lime pie. When the price is $3, the total producer surplus equals
A) $0. B) $60. C) $90. D) $120. E) None of the above answers is correct.
Which of the following would be a credit in the U.S. balance of payments?
a. the purchase of a German car by an American b. the purchase of insurance from Lloyds of London by a U.S. resident c. a trip to Japan by an American student d. a short-term loan extended to a South American country by the United States government