This topic contains a solution. Click here to go to the answer

Author Question: Suppose the economy is in long-run and short-run equilibrium. The Fed changes its policy by raising ... (Read 79 times)

genevieve1028

  • Hero Member
  • *****
  • Posts: 601
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
Answer to Question 1

D

Answer to Question 2

D




genevieve1028

  • Member
  • Posts: 601
Reply 2 on: Jun 30, 2018
Excellent


ashely1112

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Gracias!

 

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

For a complete list of videos, visit our video library