Based on price setting behavior, which of the following will cause a reduction in the price level?

A) an increase in productivity
B) a reduction in the nominal wage
C) a reduction in the markup
D) all of the above
E) none of the above

D

Economics

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If the interest rate is 7 percent on euro-denominated assets and 5 percent on dollar-denominated assets, and if the dollar is expected to appreciate at a 4 percent rate, the expected return on ________-denominated assets in ________ percent

A) dollar; euros is 3 B) euro; dollars is 1 C) dollar; euros is 1 D) euro; dollars is 3

Economics

Compare and contrast the different ways the Federal Reserve would handle a recession and inflation.

What will be an ideal response?

Economics