Recall the Application. When applying the Taylor Rule to the decade of 2000, economist John Taylor found that past experience showed that from 2001 to 2004, the Fed should have ________ interest rates instead of ________ interest rates

In the Keynesian model, a build-up of unwanted inventories leads to

A) rising interest rates. B) falling unemployment. C) falling output. D) falling money wages.

The purchase of foreign currency by a central bank will tend to cause ________

A) an appreciation of the domestic currency B) a depreciation of the domestic currency C) an increase in the value of foreign exchange, but no change in the value of the domestic currency D) a decrease in the value of foreign exchange, but no change in the value of the domestic currency