Refer to the given figure where the nominal interest rate equals 6 percent and the money supply equals 600.If the Federal Reserve wants to raise the interest rate to 8 percent, it must ________ the money supply to ________.

If the dollar interest rate is 4 percent, the euro interest rate is 6 percent, then

A) an investor should invest only in dollars. B) an investor should invest only in euros. C) an investor should be indifferent between dollars and euros. D) invest only in dollars if the exchange rate is expected to remain constant. E) invest only in euros if the exchange rate is expected to remain constant.

Which of the following is most likely to result if the Congress passes the living wage law?

a. Cost-push inflation b. Demand-pull inflation c. Deflation d. Recession e. Stagnation