If the Fed is worried about inflation and wants to raise the ...

[Frost2351]

If the Fed is worried about inflation and wants to raise the interest rate, in the short run it can
 
  A) increase the demand for money.
  B) decrease the demand for money.
  C) increase the quantity of money.
  D) decrease the quantity of money.
  E) directly raise the interest rate without affecting either the demand for money or the supply of money.

Question 2

The new growth theory asserts that profits are
 
  A) temporary, because the discoveries that lead to profits are eventually used by all.
  B) an illusion, since costs are never fully covered.
  C) permanent, because physical activities can be replicated.
  D) not an essential component determining whether the economy grows or not.
  E) permanent, because they are derived from discoveries.

[Bison]

Answer to Question 1

D

Answer to Question 2

A

[Frost2351]

Thank you

[Bison]

No problemo