Author Question: If the monthly unemployment rate increase mentioned in the Application wound up being a permanent ... (Read 72 times)

casperchen82 · **on:** Jun 29, 2018

If the monthly unemployment rate increase mentioned in the Application wound up being a permanent and not temporary change, the best economic decision by the committee would most likely be to

A) decrease the money supply to stimulate the economy.
B) not change monetary policy.
C) decrease the money supply to slow the economy down.
D) increase the money supply to stimulate the economy.

Question 2

If the CPI is 170 at the beginning of the year and 181 at the end, and a bank is paying a nominal interest rate of 6 percent, we see that

A) the real interest rate is positive and is less than 1 percent.
B) the interest nominal rate is negative.
C) the real interest rate is negative.
D) the real interest rate is positive and is larger than 1 percent.
E) the real interest rate is equal to zero.