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[solution]: 85. What policy would be most appropriate here? lower interest


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85. What policy would be most appropriate here?     

lower interest rates and higher government spending

lower interest rates and lower government spending

higher interest rates and higher government spending

higher interest rates and lower government spending

86. How could a reduction in inventories slice the GDP growth number. 83

The GDP growth number referred to here must be growth in aggregate demand

Actual GDP growth must have been 5.7 percent

Actual GDP growth must have been 1.1 percent

The GDP growth number must include the 1.8 percent price increases

87. ?A major revision to last year?s inflation numbers yesterday indicated that U.S. inflation had actually been running a half-percentage point higher than the market had previously assumed. This implies that in real terms the Fed?s benchmark federal funds interest rate is considerably more accommodative than the Fed had thought. This foretells ?? The best way to complete this clip is

a) interest rate increases

b) interest rate decreases

c) money supply increases but no interest rate change

d) money supply decreases but no interest rate change

 


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