According to the short-run Phillips curve, if the central bank increases the money supply, then
a. inflation and unemployment will both fall.
b. inflation and unemployment will both rise.
c. inflation will fall and unemployment will rise.
d. inflation will rise and unemployment will fall.
d
Economics
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The level of reserves in the banking system is determined by
A) the Federal Open Market Committee. B) the Treasury Department. C) bond dealers. D) the American Banking Association.
Economics
If bond prices rise,
A) interest rates rise, which in turn, discourage investment. B) interest rates fall, which in turn, discourage investment. C) interest rates rise, which in turn, stimulate investment. D) interest rates fall, which in turn, stimulate investment.
Economics