If policy makers expand aggregate demand, they can lower unemployment ____, but only by ____
a. temporarily; decreasing inflation
b. temporarily; increasing inflation
c. permanently; decreasing inflation
d. permanently; increasing inflation
b
Economics
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Mugabe's new money:
A. didn't increase inflation rates in Zimbabwe. B. caused Zimbabwe's deflation to get even worse. C. helped pull Zimbabwe out of its recession. D. didn't increase productivity in Zimbabwe.
Economics
The table above gives the quantity of money and money demand schedules. Suppose that the interest rate is equal to 3 percent. The effect of this interest rate in the money market is that
A) the money market is in equilibrium. B) people buy bonds and the interest rate falls. C) people sell bonds and the interest rate rises. D) bond prices rise so that the interest rate rises.
Economics