The Federal Reserve increases the federal funds rate. The resulting economic change will be represented by a(n):
a. upward movement along the short-run Phillips curve.
b. downward movement along the short-run Phillips curve.
c. rightward shift of the short-run Phillips curve

Which of the following describes the role of the government in a fixed exchange rate regime?

a. establishing capital controls b. controlling budget deficits c. buying and selling of currency by the central bank d. expanding the money supply

Refer to the figure above. In free trade A will import

A) 700 units from country C. B) 700 units from C and 600 units from B. C) 600 units from C. D) 600 units from C and 400 units from B.