Answer:
If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the same, nominal GDP but not real GDP - Option C
Explanation:
if there is an increase in the prices of all goods and services produced in the economy while the quantity of all goods and services remained the same, the outcome would be an increase in the nominal GDP.
If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the same, nominal GDP but not real GDP - Option C
B Missing a credit card payment
Answer:
D. agents will immediately adjust their expectations of inflation up.
Explanation:
Expansionary monetary policies are geared towards stimulating economic growth. The Fed can impose lower interest rates or purchase bonds and securities in open market operations as expansionary tools. Lowering interest rates encourages banks and other lending institutions to lend money to firms and households.
Purchasing bonds and securities adds money to the banking system. The increased money will be loaned out to businesses and individuals. The availability of low-cost credit motivates firms to borrow and expands their business capacities. When households borrow with ease, it leads to an increase in consumption expenditure. These actions result in too much money in circulation, which is inflation.
