If the Federal Reserve unexpectedly increases the money supply, which of the following will most likely happen in the short run?
a. real GDP will rise.
b. real GDP will fall.
c. real interest rates will rise.
d. the budget deficit will rise.
A
Economics
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In the figure above, the price of bonds would fall from P2 to P1 if
A) there is a business cycle recession. B) there is a business cycle expansion. C) inflation is expected to increase in the future. D) inflation is expected to decrease in the future.
Economics
If bus travel is an inferior good, then its income elasticity of demand will be:
a. strictly greater than one. b. positive. c. equal to zero. d. negative.
Economics