Author Question: Refer to Figure 17-2. Suppose the Fed used expansionary policy to push short-run equilibrium to ... (Read 69 times)

BrownTown3 · **on:** Jun 29, 2018

Refer to Figure 17-2. Suppose the Fed used expansionary policy to push short-run equilibrium to point B. If the short-run equilibrium remained at point B long enough,

A) the economy would move back to point A.
B) the short-run Phillips curve would shift down.
C) the economy would stay at point B in the long run.
D) the short-run Phillips curve would shift up.

Question 2

Which of the following is an example of foreign direct investment in China?

A) Chinese Shenzen Airlines company buys a small U.S. midwest airline company, Air Chicago.
B) The bank of China purchases U.S. Treasury bonds.
C) A U.S. foreign exchange speculator buys 200,000 worth of the Chinese currency the yuan.
D) The U.S. company Walmart buys a warehouse in Shanghai.
E) U.S. auto entrepreneur Elon Musk buys stock in Alibaba Group Holding Limited of Hangzhou, China.