An attempt by a central bank to alter the money supply by buying or selling domestic assets
A) will leave both domestic money supply and foreign reserves unchanged.
B) will cause an offsetting change in aggregate demand.
C) will lead to a rise in domestic employment and output.
D) will lead to a decrease in domestic employment and output.
E) will cause an offsetting change in foreign reserves and leave the domestic money supply unchanged.
E
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Ceteris paribus means "Let the buyer beware."
Indicate whether the statement is true or false
Which of the following does the long-run Phillips curve tell us?
a. That the Fed can select any rate of unemployment it wants in the long run b. That the Fed can select any rate of inflation and unemployment rate it wants in the long run c. That the Fed can select neither the rate of inflation nor the rate of unemployment in the long run d. That there is a tradeoff between the rate of inflation and the rate of unemployment in the long run e. That the Fed can select any rate of inflation it wants in the long run