Erstellt von casedlynch
vor mehr als 10 Jahre
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Frage | Antworten |
Does the fed make a profit? | no |
find real rate of interest | plug in potential output as y and solve for r |
national saving equals planned investment when | the economy is at potential |
a. Competition among brokers forces down the commission charge for selling holdings of bonds or stocks. | Nominal interest rates will decrease and demand for money will decrease |
Grocery stores begin to accept credit cards in payment. | Nominal interest rates will decrease. |
c. Financial investors become concerned about increasing riskiness of stocks. | Nominal interest rates will increase and demand for money will increase |
a reduction in taxes shifts aggregate demand | to the right |
when the fed raises its target rate, in the short run | output and inflation rise |
when the fed raises its target rate, in the long run | inflation rises and output stays the same |
in a recessionary gap, not changing target inflation rate causes ____ in short run | recessionary gap with higher unemployment |
in a recessionary gap, not changing target inflation rate causes ____ in long run | potential output at a lower price level |
demand shocks shift the | demand curve to the left |
inflation inertia | inflation tends to remain roughly constant |
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