If the Fed raises the interest rate, this will ______ inflation and ______ real GDP in the short run.

a. reduce; raise
b. increase; lower
c. increase; raise
d. reduce; lower

d. reduce; lower

Economics

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What effect does restrictive monetary policy have on short-term real interest rates?

a. Restrictive monetary policy tends to push short-term interest rates upward. b. Restrictive monetary policy tends to push short-term interest rates downward. c. The effect of restrictive monetary policy on short-term interest rates is unpredictable. d. Restrictive monetary policy has no effect on short-term interest rates.

Economics

The minimum wage is an example of a price floor.

Answer the following statement true (T) or false (F)

Economics