When output is below potential and the policy rate has hit the floor of zero, the resulting fall in inflation leads to ________ real interest rates, which ________ output further, which causes inflation to fall further

A) lower; increase
B) higher; depress
C) higher; increase
D) lower; depress

B

Economics

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In a market with a price support set above the equilibrium price,

A) consumers gain. B) taxes on consumers decrease. C) marginal benefit exceeds marginal cost. D) the market is efficient. E) farmers gain.

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According to the law of supply, there is a direct relationship between quantity supplied and:

a. the number of sellers. b. costs of resources. c. technology. d. the price of the good.

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