Author Question: If there are no changes in inflation expectations, a fall in the federal funds rate: A) increases ... (Read 77 times)

kshipps · **on:** Jun 30, 2018

If there are no changes in inflation expectations, a fall in the federal funds rate:

A) increases both the long-run nominal interest rate and the long-run expected interest rate.
B) decreases the long-run nominal interest rate and increases the long-run expected interest rate.
C) decreases both the long-run nominal interest rate and the long-run expected interest rate.
D) increases the long-run nominal interest rate and decreases the long-run expected interest rate.

Question 2

Which of the following has been the largest contributor to increases in the quantity of labor in the Unites States during the past 50 years?

A) The proportion of women taking paid jobs has increased.
B) The proportion of young adults entering college has decreased.
C) The proportion of seniors taking early retirement has decreased.
D) The proportion of men taking paid jobs has increased.
E) None of the above because the quantity of labor has actually decreased.