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 74 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
YES! Correct, THANKS for helping me on my review

Dinolord

  • Member
  • Posts: 313
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Bururi long-fingered frog (Cardioglossa cyaneospila) Bururi long-fingered frog (Cardioglossa cyaneospila)
Blue whale skeleton, outside the Long Marine Laboratory at the University of California, Santa Cruz Blue whale skeleton, outside the Long Marine Laboratory at the University of California, Santa Cruz
Links to the World Economy Links to the World Economy
Apply long effleurage stroke to entire arm-hand to shoulder. Brush off from shoulder to hand to ... Apply long effleurage stroke to entire arm-hand to shoulder. Brush off from shoulder to hand to ...
Long division for polynomials Long division for polynomials
Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ... Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ...
Video: Immune responses Animation

For a complete list of videos, visit our video library