Because prices are sticky in the short-run, when the Federal Reserve raises the federal funds rate
A) nominal interest rates fall.
B) real interest rates rise.
C) inflation falls.
D) real interest rates fall.
B
Economics
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Which of the following is an example of featherbedding?
a. a craft union's restricting entry into its profession b. a union-imposed wage floor c. an increase in labor productivity that results from a decrease in quit rates d. attempts to reduce the sale of nonunion goods e. a construction workers union's requiring an unnecessarily large number of workers to do a particular job
Economics
Which of the following should be held constant when calculating an income elasticity of demand?
a. the price of the good b. prices of related goods c. tastes d. All of the above should be held constant.
Economics