Suppose an expansionary monetary policy reduces nominal interest rates. If this is the case, it follows that the expansionary monetary policy must have:
A. increased expected inflation.
B. reduced expected inflation.
C. increased expected inflation less than it reduced real interest rates.
D. reduced real interest rates less than it increased expected inflation.
Answer: C
Economics
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Refer to the figure above. When the supply curve of flash drives is S1 and the demand curve for flash drives is D, what is the shortage in the market when the price is $5?
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