Assume the central bank lowers the discount rate. What is the net effect on the unemployment rate (assume fixed exchange rates)? Answer assuming all the adjustments have worked their way through the macroeconomic system, and it is in equilibrium
a. The unemployment rate rises.
b. The unemployment rate falls.
c. The unemployment is not affected.
d. The change in the unemployment rate depends on the degree of international capital mobility.
.C
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Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather belts, the supply curve of leather shoes will shift
A) leftward and the equilibrium price of leather shoes will fall. B) leftward and the equilibrium price of leather shoes will rise. C) rightward and the equilibrium price of leather shoes will fall. D) rightward and the equilibrium price of leather shoes will rise.
Refer to Figure 10-6. A change in the price of candy only is shown in
A) Panel A. B) Panel B. C) Panel C. D) none of the above panels.