If the current unemployment rate is 5%, under which of the following circumstances would you expect the Fed to use expansionary monetary policy?
A) if the inflation rate is below 5%
B) if the natural rate of unemployment is above 5%
C) if the natural rate of unemployment is below 5%
D) if the inflation rate is above 5%
C
Economics
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If you know the number of euros that can be exchanged for one dollar, you can easily figure out the number of dollars needed to obtain one euro by finding the reciprocal of the exchange rate for dollars per euro
a. True b. False
Economics
If the Fed raises the discount rate, what will be the effect on the money supply?
a. It will decrease the money supply. b. It will increase the money supply. c. No change in the money supply. d. Not enough data to give an answer.
Economics