In the late 1980s and the early 1990s, the Fed followed a policy of
a. controlling the money supply to stimulate investment
b. decreasing interest rates to stimulate investment
c. fixing the money supply at a constant rate of growth in order to stimulate investment
d. allowing the money supply to increase in order to stimulate international trade
e. selling its government bonds in order to reduce the size of the federal government's debt
B
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A) increase; encourages B) increase; discourages C) decrease; encourages D) decrease; discourages
The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of a complement such as soda?
A) Figure A B) Figure B C) Figure C D) Figure D