Practice Exam Flashcards
1
Q
If people expecting prices to rise and they fell who would benefit
A
Lenders
2
Q
Country has a trade deficit
A
NCO must be negative and savings is smaller than investment
3
Q
Large decline in net exports. Fed will do what to stablize?
A
Buy bonds to lower interest rates
4
Q
Money supply growth rate increases
A
Urate drops and inflation increases
