An adverse supply shock generally decreases the price level and the real GDP
a. True
b. False
Indicate whether the statement is true or false
False
Economics
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A situation in which the Fed's target interest rate has fallen as far as it can fall is sometimes described as a
a. liquidity preference. b. liquidity trap. c. open-market trap. d. interest-rate contraction.
Economics
The figure below depicts the IS-LM-FE model with floating exchange rates.
The move from Point A to Point B is caused by
A. contractionary fiscal policy. B. expansionary monetary policy. C. expansionary fiscal policy. D. contractionary monetary policy.
Economics