Which of the following result from a change in the money supply brought about by an open market purchase?
A) lower interest rate, higher exchange rate, decreased demand for investment and net exports
B) higher interest rate, higher exchange rate, increased demand for investment and decreased demand for net exports
C) lower interest rate, lower exchange rate, increased demand for investment and net exports
D) higher interest rate, lower exchange rate, decreased demand for investment and increased
demand for net exports
Ans: C) lower interest rate, lower exchange rate, increased demand for investment and net exports
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Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for tuna. Which panel best describes what happens in this market when there is a decrease in the productivity of commercial fishermen?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
In the event that nominal short-term interest rates cannot be lowered further, the Federal Reserve might rely on ________
A) federal government fiscal policy B) targeting the fed funds rate C) quantitative easing D) targeting the inflation rate