If the Federal Reserve decreases the Federal funds rate, other short-term interest rates ________ and the exchange rate ________

A) fall; falls
B) do not change; rises
C) fall; does not change
D) fall; rises
E) do not change; falls

A

Economics

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Which of the following is likely to lead to a partial recovery after a recession?

A) A decrease in money supply B) A decrease in tax rates C) A decrease in government spending D) An increase in the interest rate

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Consider the two graphs above. Suppose that businesses expect to hire more workers. This would ________ the desired level of the capital stock, as depicted in graph ________

A) increase; B B) increase; A C) decrease; B D) decrease; A

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