Author Question: If workers and firms know that the Federal Reserve is following an expansionary monetary policy, ... (Read 122 times)

ericka1 · **on:** Jun 29, 2018

If workers and firms know that the Federal Reserve is following an expansionary monetary policy, workers and firms will expect inflation to ________ and will adjust wages so that the real wage ________.

A) decrease; decreases B) increase; remains unchanged
C) increase; increases D) increase; decreases

Question 2

Walmart wants to raise 250 million to finance the renovation of their retail stores, and the company wishes to raise the funds through indirect finance. Which of the following methods could it use?

A) It could issue 250 million in stock. B) It could sell 250 million in bonds.
C) It could borrow 250 million from a bank. D) It could choose either A or B.