Based on the above table, if the current price level is 100 and ...

[tiara099]

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

[Meganchabluk]

Answer to Question 1

D

Answer to Question 2

D

[tiara099]

Gracias!

[bigcheese9]

TYSM