This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose the economy is in long-run and short-run equilibrium. The Fed changes its policy by raising ... (Read 81 times)

genevieve1028

  • Hero Member
  • *****
  • Posts: 601
on: Jun 30, 2018
Suppose the economy is in long-run and short-run equilibrium. The Fed changes its policy by raising the difference between the discount rate and the federal funds rate. In the long run we would expect to observe
 
  A) a higher real national income. B) a lower real national income.
  C) a higher price level. D) a lower price level.

Question 2

If an undervalued currency is allowed to float:
 
  A) its value will depreciate.
  B) its quantity supplied in exchange for the other currency will decrease.
  C) its quantity demanded in exchange for the other currency will increase.
  D) its value will appreciate.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

samiel-sayed

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

D


genevieve1028

  • Member
  • Posts: 601
Reply 2 on: Jun 30, 2018
:D TYSM

kishoreddi

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Long-range forecasts Long-range forecasts
Japan’s Economy and Society Japan’s Economy and Society
Part of a Semantic Network in Long-Term Memory Part of a Semantic Network in Long-Term Memory
A tightrope walker walks across a 30-m long wire tied between two poles. The center of the wire ... A tightrope walker walks across a 30-m long wire tied between two poles. The center of the wire ...
Experiments showing that long- or short-day plants flower in response to night length. Each horizont Experiments showing that long- or short-day plants flower in response to night length. Each horizont
Video: Transcription—A molecular view

For a complete list of videos, visit our video library