In general, if the Fed increases its target for the federal funds rate,
A) short-term nominal interest rates will increase and long-term nominal interest rates will not change.
B) short-term nominal interest rates will not change and long-term nominal interest rates increase.
C) short-term nominal interest rates will increase and long-term nominal interest rates will also increase.
D) short-term nominal interest rates will not change and long-term nominal interest rates will also not change.
C
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GDP excludes the value of intermediate goods because their value is included in the value of final goods
a. True b. False Indicate whether the statement is true or false
A temporary decrease in the price of oil would be considered a:
A. short-run supply shock. B. long-run supply shock. C. demand shock. D. The changing price of oil would not affect any of these.