Thank you for your help! QUESTION 7 In a graph where the interest rate is on the

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Thank you for your help!

QUESTION 7 In a graph where the interest rate is on the y-axis and the quantity of money is on the x-axis, a money supply curve that is independent of the interest rate i a vertical line. a horizontal line. an upward sloping line a 45 degree line from the origin QUESTION 8 If the actual unemployment rate is above the natural rate, we would expect that the inflation rate is zero. the inflation rate is constant. the inflation rate is increasing o the inflation rate is decreasing QUESTION 9 If the Fed is strongly committed to fighting inflation, it will be reluctant to focus solely on price stabilization. become too independent from Congress. increase unemployment. increase the money supply QUESTION 10 An appreciation of the U.S. dollar will likely cause U.S. exports to and U.S. imports to . decrease: decrease increase; decrease increase; increase decrease; increase

Explanation / Answer

a) A situation where the money supply curve is independent of the interest rate the money supply curve will be a "vertical line"

b) "D"

When the inflation is down the unemployment will be increasing.

c) "D"

An increase in the money supply will affect the fight against inflation.

d) "D"

Appreciation in the Dollar will increase the imports and decrease the exports.

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