If the federal reserve announces that its target for the federal funds rate is rising from 4 percent to 4.25 percent, how do you expect workers and firms to react?
a.) as long as the fed's announcement is credible, workers and firms will increase their consumption and investment spending, which will increase aggregate demand and inflation.
b.) as long as the fed's announcement is credible, workers and firms will reduce their consumption and investment spending, which will reduce aggregate demand and reduce inflation.
c.) if the fed's announcement is not credible, workers and firms will not expect inflation to fall so they will reduce their consumption and investment spending, which will increase aggregate demand and reduce inflation.
d.) workers and firms will incorporate the increase in interest rates into their expectations of inflation, and they will expect inflation to rise as a result of fed's policy announcement.
Answers: 2
Another question on Business
Business, 21.06.2019 13:50
Dodd corporation uses the weighted-average method in its process costing system. this month, the beginning inventory in the first processing department consisted of 400 units. the costs and percentage completion of these units in beginning inventory were:
Answers: 1
Business, 21.06.2019 20:30
Licensing is perhaps the easiest method of entering into international trade. another method of entering international trade, which can be relatively low risk, is which opens several levels of involvement to company
Answers: 2
Business, 22.06.2019 10:00
Scenario: you have advised the owner of bond's gym that the best thing to do would be to raise the price of a monthly membership. the owner wants to know what may happen once this price increase goes into effect. what will most likely occur after the price of a monthly membership increases? check all that apply. current members will pay more per month. the quantity demanded for memberships will decrease. the number of available memberships will increase. the owner will make more money. bond's gym will receive more membership applications.
Answers: 1
You know the right answer?
If the federal reserve announces that its target for the federal funds rate is rising from 4 percent...
Questions
