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Suppose that the inflation rate has been 3 percent per year for several years, and the unemployment rate has been stable at 5 percent. Unanticipated changes in government policy cause the inflation rate to increase to 6 percent. In the short run, we would expect the unemployment rate to

The balance of payments is

If the money multiplier is 2.4 and the Fed buys $8 million in securities on the open market, transaction deposits could potentially

If the Fed decides to buy bonds, the result will be

Which of the following would be an example of passive policy making?

An expansionary monetary policy results in lower interest rates, which in turn

Actions on the part of monetary and fiscal policy makers that are undertaken in response to some change in the overall economy are known as

When households hold money for unplanned expenditures and emergencies, it is called

Comparative advantage means

In the interest-rate-based transmission mechanism, a decrease in the money supply will