The interest rate falls if   a. the price level falls or the money supply rises.   b. the price level rises or the money supply falls.   c. the price level falls or the money supply falls.   d. the price level rises or the money supply rises.

Q: Which of the following would cause the price level to rise and output to fall in the short run? a.…

A: A Short-run supply is described as the present supply given a business's capital expenses on fixed…

Q: 11- Nominal interest rate (percent per year) 10- 8- 7- 6- 5- 4- 2.8 MD 2.9 3.0 3.1 Quantity of money…

A: Opportunity cost implies the value of the next best alternative that must be forgone in order to…

Q: Inflation rate is showing the rising price level of the economy. There are two causes of inflation,…

A: Meaning of Inflation: The term inflation refers to the situation under which there is an excessive…

Q: What does the interest rate effect say? a. Interest rates causes inflation to go down b. Interest…

A: As prices go up,there is inflation,to control inflation money supply would be decreased by…

Q: 19. One problem with the consumer price index stems from the fact that, over time, consumers tend to…

A:

Q: In times of inflation, why would government subsidies be not preferred as a means to manage prices?…

A: A rise in money supply fuels inflation in the economy.

Q: In 2004 the Fed began raising interest rates? What is likely to happen to the price level and real…

A: The macroeconomic equilibrium in an economy is determined by the aggregate demand and aggregate…

Q: The equilibrium price on the market for bonds is $900, and the equilibrium quantity is million. If…

A: The current price of the bond i.e. $ 960 is greater than the equilibrium price i.e. $ 900.  This…

Q: the central bank increases the money supply while the government decreases government spending, the…

A: Money supply refers to the total amount of money which is in movement or circulation in a country.…

Q: List and describe thefactors that affectthe money marketand the equilibriuminterest rate

A: The equilibrium in the money market is established when the money supplied by the monetary authority…

Q: nemployment rate

A: The Aggregate Supply (AS) curve represents the whole quantity of products and offerings that every…

Q: When financial investors become more concerned about the riskiness of stocks, everything else held…

A: Money is a medium of exchange that is broadly acknowledged in transactions including goods,…

Q: In the late 1960s, Milton Friedman and Edmund Phelps argued that a. the trade-off between…

A: Edmund Phelps and Milton Friedman separately confronted the basic concepts at the peak of the…

Q: If policymakers accommodate an adverse supply shock, then in the short run the unemployment rate…

A: Answer to the question is as follows :

Q: student who cashes a check at the student union in order to go shopping illustrates an ample of the…

A: Money is a widely accepted medium of exchange, typically in the form of coins, banknotes, or digital…

Q: In theory, inflation not only ______ the value of consumers' money over time, but it also increases…

A: The effect of price change or Inflation can be seen on both the participants that are the consumers…

Q: To increase the money supply, what could the Federal Reserve do? Choose one or more: OA. make an…

A: Increase in money supply is known as expansionary monetary policy. Decrease in money supply is known…

Q: A binding price floor causes a. Demand and supply is the same b. Shortage c. No shortage of surplus…

A: In a market, price control policy of the government to protect any of the market participants and…

Q: four possible outcomes for 2017, depending on the level of aggregate demand in that year. Potential…

A: A law developed by American economist Arthur Melvin Okun states that for every 1% gain in GDP, there…

Q: In the short run, A. the price level alone adjusts to balance the supply and demand for money. B.…

A: The aggregate demand and aggregate supply in the economy determine the macroeconomic equilbrium in…

Q: The economy's unemployment rate is 2% and the inflation rate is 18%. The most appropriate policy for…

A: As we know that Phillips curve shows the relationship between inflation and Unemployment rate . And…

Q: Inflation is an economic problem because it leads inevitably to unemployment. leads to recession.…

A: Inflation is the sustained increase in the general price level of goods and services in an economy…

Q: as the slope of the aggregate supply curve increase, this indicates that; a. inflation will be less…

A: When slope of aggregate supply curve increases,economy would be moving towards potential GDP.

Q: Economics Consider the money demand. Suppose that price changed. Because of the change, nominal…

A: In an economy, it is given that the nominal demand for money reduces due to the change in the price…

Q: What happens if the fed announces a fall in the money supply? What happens to the price level? show…

A: Equilibrium in money market is obtained where money supply curve and money demand curve intersect…

Q: Consider the short run and the long run and then choose the statement that is correct.  A. The…

A: The money supply is a term you may or may not be familiar with. This refers to all of the liquid…

Q: Fearing a recession, the government decides to give citizens a tax rebate to buy Christmas gifts.…

A: The government makes a decision according to the current market situation and future expectations.…

Q: Suppose you read a Wall Street Journal article that states the Federal Reserve will lower the…

A: Monetary policy: - it is a tool of government or central bank of a country in which they control…

Q: If the Fed increases the money supply, A. the interest rate increases, which tends to reduce stock…

A: Central banks regularly use company expectations when making monetary policy decisions in order to…

Q: According to Monetarists, the price level is likely to remain stable over time if the money supply…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: Recent economic news includes:   a. . Grocery prices falling to the lowest level since before…

A: A mixed picture of encouraging and unsettling trends can be seen in recent economic developments.…

Q: 8. The sources of inflation During World War I and World War II, the U.S. government spent large…

A: The equilibrium is established where the aggregate demand and aggregate supply. The change in demand…

Q: a government is facing high inflation, then it will take an action as following:   I. increase…

A: Answer: Correct option: 1 (increase taxes, increase discount rate) Explanation: Inflation refers to…

Q: Part IV: The Results As the money supply (increases/decreases), businesses will get (more/less)…

A: The economies around the world tend to work upon the basis of the operations of the entities, such…

Q: If the dollar falls in value compared to other currencies, what will happen in the United States?…

A: When the dollar value depreciate compared to other currencies, then the US goods become less…

Q: The Federal Reserve will lower short-run output by   a.  decreasing the money supply.   b.…

A: The money supply defines the total amount of money in circulation within an economy, including…

Q: 1. Explain the factors that causes demand-pull inflation. 2. Explain the factors that causes…

A: Inflation refers to the  rise in general price level over period of time . here general price level…

Q: The demand for money increases and the demand for money curve shifts rightward if O a. the price…

A: Demand curve of money shows the amount of money demanded at the particular interest rate whereas,…

Q: When the federal reserve increases money investment and unemployment rate __- .A. decreases,…

A: Money supply is the total amount of money supplied at the given interest rates in the economy within…

Q: :Inflation is

A: A Patent is legal license issued by the government that gives the holder the right to be the sole…

Q: The U.S. economy is at full employment when the Fed increases the quantity of money, and all other…

A: In the short run, monetary policy, which is managed by a nation's central bank (like the Federal…

Q: The economy starts out at full-employment equilibrium. Some events then occur that generate…

A: Cost push inflation can be defined as inflation which occurs due to rise in input costs like rise in…

Q: INFLATION RATE O Curve 1 B Curve 2 UNEMPLOYMENT RATE Use the graph above to fill in the following…

A: Dear Student as you have posted multiple sub-parts in a question but we are allowed to attempt only…

Q: The supply of money increases when a. the price level falls. b. the interest rate increases. c. the…

A: Fed can influence the market supply by changing required reserve ratio, discount rate or by using…

Q: I. Increase in interest rates causes the supply curve to shift. II. Monetary expansion causes a…

A: Money supply in the loanable funds market refers to the availability of money to lend, whereas money…

Q: 18. Mr. Ma owns a pizza shop with AVC = $70 and ATC = $98. It is a competitive market and the market…

A: As per our honor code, we are allowed to answer only one question at a time. Please resubmit the…

Q: 15. The pattem below would probably: /// 1Go down trend 1. Go up and down again b. Go up trend e. Go…

A: The above chart show candlestick pattern, where black bearish candle covers the previous bullish…

Q: Inflation targets are usually specified as a. a range for the inflation rate. b. a specific…

A: Inflation is referred to as general rise in the prices of goods and services which declines the…

Unemployment and Cost of Unemployment

Unemployment is the state of being unemployed, even when an individual is actively seeking work opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed.