After the Great Recession when the recovery turned out to be very weak, economic policy in the U.S. had to turn forcefully toward fiscal policy because of the following reasons, except:
A. Monetary policy's cyclical asymmetry
B. The banking system fell into a liquidity trap
C. Interest rates had already been cut to very low levels
D. The time lags of monetary policy
D. The time lags of monetary policy
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Suppose that the number of jobs for engineers expands by 10 percent per year, the number of new engineers by 5 percent per year while the number of automobile mechanics grows by 8 percent and the number of new automobile mechanics jobs grows by 3
percent. We conclude that A) frictional unemployment will increase. B) frictional unemployment will decrease. C) structural unemployment will increase. D) structural unemployment will increase 4 times.
On a graph showing investment along the vertical axis and income along the horizontal axis, _____
a. the investment line will be downward sloping b. the investment line will be upward sloping c. the investment line will be horizontal d. the investment line will be vertical e. the investment line will be U-shaped
The consumption that is greater than zero when national income is zero is
a. permanent consumption b. induced consumption c. nondependent consumption d. autonomous consumption e. automatic consumption
The United States is guilty of dumping on the international market because of the
A. superior technology. B. high availability of capital. C. highly educated workforce. D. agricultural subsidies.