If the Federal Reserve lowers the Federal funds rate,
A) the price level falls.
B) net exports decrease.
C) other short-term interest rates rise.
D) other short-term interest rates fall.
E) Both answers A and C are correct.
D
Economics
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Suppose real GDP for a country is $13 trillion in 2015, $14 trillion in 2016, $15 trillion in 2017, and $16 trillion in 2018. Over this time period, the real GDP growth rate is
A) increasing. B) decreasing. C) constant. D) negative.
Economics
Upon buying a car with airbags, Indy begins to drive recklessly. This is an example of the:
A. principal-agent problem. B. adverse selection problem. C. moral hazard problem. D. free-rider problem.
Economics