In 2005-2006, the Fed increased interest rates in an attempt to halt inflation. What was the most likely effect of raising interest rates on velocity?
a. It will decrease.
b. It will increase.
c. It will remain constant.
d. Velocity is unrelated to saving accounts.
b
Economics
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Which of the following would most likely cause a country's production possibilities set to shift outward at every point along the frontier?
A) a decrease in idle capital B) a decrease in unemployment C) a general technological advance that affects all sectors of the economy D) a technological advance in only one sector of the economy E) none of the above
Economics
Interest payments in the United States increased during the 1980s because of: a. growing federal deficits
b. a low tax rate. c. growing budget surpluses. d. a fall in government expenditure. e. an increase in national savings.
Economics