The rule-of-thumb among many economists suggests that a 10% increase in the minimum wage results in a ________ in the number of jobs held by teens.

When the economy is in a recession, the Fed can ________ the federal funds rate, which ________ aggregate demand and ________ real GDP

A) lower; increases; decreases B) raise; decreases; increases C) lower; increases; increases D) raise; increases; decreases E) lower; decreases; decreases

An investor who felt that the U.S. and world economies were about to improve, would be likely to

A) avoid investing in U.S. treasury bonds because interest rates would soon fall causing bond prices to rise. B) avoid investing in U.S. treasury bonds because interest rates would soon rise causing bond prices to fall. C) invest in U.S. treasury bonds because interest rates would soon fall causing bond prices to rise. D) invest in U.S. treasury bonds because interest rates would soon rise causing bond prices to fall.