If the unemployment rate is falling from 4 to 3%, while the inflation rate is increasing to 5%, the Fed will most likely: Question options: not change much. increase the money supply. increase the target for the federal funds rate. decrease the target for the federal funds rate. decrease the inflation rate by setting a price ceiling.
not change much.
increase the money supply.
increase the target for the federal funds rate.
decrease the target for the federal funds rate.
decrease the inflation rate by setting a price ceiling.
When bond interest rates fall, the relative expected return on holding stocks goes ___, which means that stock demand and thereby stock prices will ___, leading to an ___ in people's wealth and therefore in spending. (Note that this is when interest rates actually fall, not when people expect interest rates to fall in the future.)
Question options:
down, decrease, decrease
up, increase, increase
up, decrease, decrease
down, increase, increase

Answers

Answer 1

If the unemployment rate is falling from 4% to 3% while the inflation rate is increasing to 5%, the Fed will most likely increase the target for the federal funds rate.

This is because the falling unemployment rate suggests a stronger economy, which can lead to increased inflationary pressures. By increasing the target for the federal funds rate, the Fed aims to tighten monetary policy, which can help mitigate inflationary pressures and maintain price stability.

When bond interest rates fall, the relative expected return on holding stocks goes up, which means that stock demand and thereby stock prices will increase, leading to an increase in people's wealth and therefore in spending. Lower bond interest rates make stocks a relatively more attractive investment, which drives up demand and raises stock prices. This increase in stock prices enhances people's wealth and boosts their spending, as they feel wealthier and more confident about their financial situation.

Learn more about interest rates here:

https://brainly.com/question/28236069

#SPJ11


Related Questions

A physician or surgeon may not accept or agree to accept any payment, fee, reward or anything of value for soliciting patients or patronage for any physician or surgeon. A violation constitutes a Class A misdemeanor and each payment, reward, or fee or agreement to accept a reward or fee is a separate offense.

Answers

The given statement explains that physicians or surgeons cannot accept any form of payment, fee, reward, or anything of value in exchange for soliciting patients or patronage for other physicians or surgeons.

This rule aims to prevent unethical practices in the medical field. Violating this rule is considered a Class A misdemeanor, and each instance of accepting a payment, reward, or fee or agreeing to accept one is considered a separate offense.

In simpler terms, it means that doctors cannot receive any sort of compensation for referring patients to other doctors. This is to ensure that medical decisions are made based on the best interests of the patient, rather than financial gain. If doctors do accept such payments or rewards, they can face legal consequences.To summarize, the rule prohibits physicians and surgeons from accepting any form of payment in exchange for referring patients to other doctors, as this can compromise the integrity of medical decision-making.

To know more about fee visit:

https://brainly.com/question/33716454

#SPJ11

Other Questions
credit-risk modelling: theoretical foundations, diagnostic tools, practical examples, and numerical recipes in python Pinto LC, Falcetta MR, Rados DV, Leitao CB, Gross JL. Glucagon-like peptide-1 receptor agonists and pancreatic cancer: a meta-analysis with trial sequential analysis. Scientific reports. 2019:9:1-6. which xxx would replace the missing statements in the following code to prepend a node in a doubly-linked list? in how many different ways can 14 identical books be distributed to three students such that each student receives at least two books? originally developed for detecting air pollutants, a technique called proton-induced x-ray emission, which can quickly analyze the chemical elements in almost any substance without destroying it, is finding uses in medicine, archaeology, and criminology. A cylindrical water tank has a fixed surface area of A0.. Find an expression for the maximum volume that such a water tank can take. How does the number 32.4 change when you multiply it by 10 to the power of 2 ? select all that apply. a). the digit 2 increases in value from 2 ones to 2 hundreds. b). each place is multiplied by 1,000 c). the digit 3 shifts 2 places to the left, from the tens place to the thousands place. A(n) ________ account represents the money or investments you have at a brokerage firm. Question 18 options: stock purchasing discretionary brokerage indemnity (a) Use Newton's method to find the critical numbers of the functionf(x) = x6 ? x4 + 2x3 ? 3xcorrect to six decimal places. (Enter your answers as a comma-separated list.)x =(b) Find the absolute minimum value of f correct to four decimal places. a _________ is a type of procedure that always returns a value. group of answer choices subprocedure function method event Give me...minutes and i'll be ready. a.few b.a few c.little d.a little Question 3 Describe the level curves \( L_{1} \) and \( L_{2} \) of the function \( f(x, y)=x^{2}+4 y^{2} \) where \( L_{c}=\left\{(x, y) \in R^{2}: f(x, y)=c\right\} \) As the baby boomers retire, the United States labor force participation rate will: Select one: a. decrease b. fluctuate unpredictably. O O O cremain the same. d. increase. Considers F ( x , Y ) = ( 3 + 4 x Y two ) i + 4 x two Y j , C is the arc of the hyperbola Y = one x from the point ( one , one ) until the point ( two , one two ) Determine the potential function using the potential function determine C F d r along curve C. To achieve maximum power transfer between a 44 source and a load ZL (ZL > ZG) using a transmission line with a characteristic impedance of 44 , an inductor with a reactance of 82 is connected in series with the source. Determine the distance from the load, ZL, in terms of wavelengths where the inductor should be connected. Length = State the property that justifies the statement.If A B=B C and BC=CD, then AB=CD. a coffee distributor needs to mix a(n) gazebo coffee blend that normally sells for $11.40 per pound with a queen city coffee blend that normally sells for $12.30 per pound to create 50 pounds of a coffee that can sell for $11.54 per pound. how many pounds of each kind of coffee should they mix? Online students should develop rapport with their instructors by communicating ______. justify your answer about which car if either completes one trip around the track in less tame quuantitatively with appropriate equations An artist is telling the people around him what he wants done. Write the commands he uses, choosing the proper form ( t, usted, or ustedes)