A shift of the MP curve ________
A) implies an automatic adjustment of the interest rate
B) implies a direct policy action of the Federal Reserve
C) does not alter the relationship between inflation and the interest rate
D) all of the above
E) none of the above
B
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How is total revenue calculated?
a. multiplying price by change in demand b. multiplying price by quantity sold c. multiplying change in price by change in quantity demanded d. multiplying change in price by quantity sold
James has a comparative advantage in the production of corn, while Harry has a comparative advantage in the production of bread. If James and Harry decide to trade with each other, _____
a. both Harry and James will enjoy gains from trade b. only Harry will enjoy gains from trade c. only Harry will suffer losses from trade d. only James will suffer loses from trade e. neither of them will gain from trade