Assignment 9 (Ch. 16 & 17, LS 12 & 13)

Does the fed make a profit?

find real rate of interest

national saving equals planned investment when

a. Competition among brokers forces down the commission charge for selling holdings of bonds or stocks.

Grocery stores begin to accept credit cards in payment.

c. Financial investors become concerned about increasing riskiness of stocks.

a reduction in taxes shifts aggregate demand

when the fed raises its target rate, in the short run

when the fed raises its target rate, in the long run

in a recessionary gap, not changing target inflation rate causes ____ in short run

in a recessionary gap, not changing target inflation rate causes ____ in long run

demand shocks shift the

inflation inertia