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Author Question: What is downward wage rigidity? What will be an ideal response?[br][br][b][color=#FBB117]Question ... (Read 27 times)

magmichele12

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on: Jun 30, 2018
What is downward wage rigidity?
 
  What will be an ideal response?

Question 2

How can the Federal Reserve actually increase the money supply?
 
  A) by delaying transfer of money among banks
  B) by purchasing more government bonds in the open market
  C) by doubling the reserve requirement
  D) by raising the discount rate


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AmberC1996

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Reply #1 on: Jun 30, 2018
Answer to Question 1

Downward wage rigidity refers to the phenomena where workers resist a cut in their wages. When downward wage rigidity exists, last year's wage acts as a wage floor for current wages.

Answer to Question 2

B


magmichele12

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Reply 2 on: Jun 30, 2018
Gracias!

lcapri7

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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