When the Fed lowers the federal funds rate, which of the following economic variables responds most rapidly? other short-term interest rates consumption expenditure the supply of loanable funds the inflation rate the long-term real interest rate Maintaining the growth of the money supply at a constant rate is an example of an inflation targeting rule. a money targeting rule. discretionary policy. a nominal GDP targeting rule. a money demand rule. The Fed increases the quantity of money to counteract inflation. negative net exports. a federal budget surplus. an inflationary gap. a recessionary gap. One of the major reasons why the United States exports jet airplanes is because Boeing faces ________ opportunity cost than firms in other nations in the production of such aircraft. a lower an unrelated a nonexistent an identical a higher If the United States imports purses, then the quantity of purses produced in the United States will ________ and the quantity of purses purchased by consumers in the United States will ________. decrease; increase not change; increase decrease; decrease increase; decrease increase; increase
When the Fed lowers the federal funds rate, which of the following economic variables responds most rapidly? other short-term interest rates consumption expenditure the supply of loanable funds the inflation rate the long-term real interest rate Maintaining the growth of the money supply at a constant rate is an example of an inflation targeting rule. a money targeting rule. discretionary policy. a nominal GDP targeting rule. a money demand rule. The Fed increases the quantity of money to counteract inflation. negative net exports. a federal budget surplus. an inflationary gap. a recessionary gap. One of the major reasons why the United States exports jet airplanes is because Boeing faces ________ opportunity cost than firms in other nations in the production of such aircraft. a lower an unrelated a nonexistent an identical a higher If the United States imports purses, then the quantity of purses produced in the United States will ________ and the quantity of purses purchased by consumers in the United States will ________. decrease; increase not change; increase decrease; decrease increase; decrease increase; increase
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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When the Fed lowers the federal funds rate, which of the following economic variables responds most rapidly?
other short-term interest rates
consumption expenditure
the supply of loanable funds
the inflation rate
the long-term real interest rate
Maintaining the growth of the money supply at a constant rate is an example of
an inflation targeting rule.
a money targeting rule.
discretionary policy.
a nominal GDP targeting rule.
a money demand rule.
The Fed increases the quantity of money to counteract
inflation.
negative net exports.
a federal budget surplus.
an inflationary gap.
a recessionary gap.
One of the major reasons why the United States exports jet airplanes is because Boeing faces ________ opportunity cost than firms in other nations in the production of such aircraft.
a lower
an unrelated
a nonexistent
an identical
a higher
If the United States imports purses, then the quantity of purses produced in the United States will ________ and the quantity of purses purchased by consumers in the United States will ________.
decrease; increase
not change; increase
decrease; decrease
increase; decrease
increase; increase
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