Refer to Figure 24-2. Ceteris paribus, a decrease in the expected ...

[justinmsk]

Refer to Figure 24-2. Ceteris paribus, a decrease in the expected price of an important natural resource would be represented by a movement from
 
  A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.

Question 2

The federal funds rate
 
  A) is determined directly by firm demand for funds.
  B) is determined administratively by the Fed.
  C) is determined directly by household demand for funds.
  D) is determined by the supply of and demand for bank reserves.

[ndhahbi]

Answer to Question 1

A

Answer to Question 2

D