Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

The _______ rate is the interest rate at which the Fed lends ______ to commercial banks.

A. federal funds rate; deposits B. federal funds rate; reserves C. discount rate; deposits D. discount rate; reserves

Which of the following statements is TRUE?

A) The 1957 Treaty of Rome founded the EU and created a custom union. B) The 1957 Treaty of Rome founded the EU. C) The 1957 Treaty of Rome founded the euro. D) The 1957 Treaty of Rome founded the European Central Bank. E) The 1957 Treaty of Rome founded the Stability and Growth Pact. known as SGP.