Suppose a contractionary monetary policy raises nominal interest rates. If this is the case, it follows that the contractionary monetary policy must have:
A. reduced expected inflation.
B. increased real interest rates more than it reduced expected inflation.
C. increased expected inflation.
D. increased expected inflation more than it reduced real interest rates.
Answer: B
Economics
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In the "Prisoners' Dilemma" game: a. prisoners are able to collude with one another
b. prisoners are unable to communicate with one another. c. the Nash equilibrium results in prisoners serving the smallest combined prison term. d. the Nash equilibrium results in one prisoner confessing, while the other does not.
Economics
When price is $6
A. there is a surplus.
B. there is a shortage.
C. there is both a surplus and a shortage.
D. there is neither a surplus nor a shortage.
Economics