chapter 33 quiz

chapter 33 quiz - Allcorrect 1.(s) . A) B)

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All correct 1.  Answer the next question(s) on the basis of the information in the following table.    Refer to the above table. An interest rate of 2 percent is not sustainable because: A) the demand for bonds in the bond market will fall and the interest rate will fall. B) the demand for bonds in the bond market will rise and the interest rate will fall. C) the supply of bonds in the bond market will decline and the interest rate will rise. D) the supply of bonds in the bond market will rise and the interest rate will rise. 2.  Other things equal, if the supply of money is reduced: A) the demand for money will increase. B) the interest rates will fall. C) bond prices will fall. D) investment spending will increase. 3.  According to the Taylor rule: A) for every 1 percentage point that unemployment exceeds the natural rate of  unemployment, there is a 2 percentage point gap between potential and actual GDP. B) growth in the money supply should be limited to the long-run average growth rate of real 
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This note was uploaded on 03/29/2010 for the course ECON 112 taught by Professor Smith during the Spring '10 term at Bowling Green.

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chapter 33 quiz - Allcorrect 1.(s) . A) B)

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