In the aftermath of the last financial crisis, critics of monetary policy argued that it was ineffective. The Federal Reserve had moved interest rates to historic lows without a significant stimulus effect. Some economists wondered if the United States was:
a) undergoing simultaneous increases in aggregate demand and supply.
b) undergoing offsetting changes in aggregate demand and supply.
c) facing hyperinflation.
d) in a liquidity trap.
Ans: d) in a liquidity trap.
You might also like to view...
Which of the following is a macroeconomic statement?
A) Real domestic output of seafood increased 12 percent from 2015 to 2016. B) The U.S. inflation rate was two percent in 2016. C) The price of cell phones decreased by 18 percent last year. D) Motorcycle manufacturer productivity decreased by three percent in 2016.
Recent decades have seen a trend toward globalization, which means that: a. many industries in the private sector are being bought by the government
b. domestic industries are being protected from foreign competition. c. buying and selling in markets have increasingly crossed national borders. d. large business houses have increased the market prices of their goods above marginal cost.
Within the U.S. population, blacks of prime working age (ages 25-54) have similar rates of unemployment than whites of prime working age (ages 25-54), regardless of gender
a. True b. False Indicate whether the statement is true or false
Which of the following is considered a leakage?
A. Spending on services. B. Exports. C. Taxes. D. Business investment.