Author Question: Based on the above table, if the current price level is 100 and the unemployment rate is 4 percent, ... (Read 35 times)

tiara099 · **on:** Jun 29, 2018

Based on the above table, if the current price level is 100 and the unemployment rate is 4 percent, then the

A) expected inflation rate is 8 percent.
B) inflation rate is 2.8 percent.
C) expected inflation rate is 2.8 percent.
D) inflation rate is 8 percent.
E) inflation rate is 108 percent.

Question 2

When the FOMC raises the federal funds rate, almost immediately ________, and a few weeks later the ________.

A) short-term interest rates fall; quantity of money and supply of loanable funds decrease
B) long-term interest rates rise; quantity of money and supply of loanable funds increase
C) long-term interest rates rise; quantity of money and supply of loanable funds decrease
D) short-term interest rates rise; quantity of money and supply of loanable funds decrease
E) short-term interest rates fall; quantity of money and supply of loanable funds increase