Tight monetary policy and easy fiscal policy lead to
A. high real interest rates.
B. roughly unchanged real interest rates.
C. low real interest rates.
D. roughly unchanged real interest rates only when Ricardian equivalence holds; otherwise, low real interest rates.
Answer: A
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Economic growth can be defined as a percentage increase in
A) per capita real GDP. B) nominal GDP. C) consumption by households. D) real GDP.
A situation in which spending exceeds income is
A) average propensity to save. B) dissaving. C) the saving function. D) the consumption function.
A depreciation of the U.S. dollar will encourage, other things the same ________
A) the purchase of foreign goods by foreign economic agents B) the purchase of foreign goods by U.S. economic agents C) the purchase of U.S. assets by foreign economic agents D) the purchase of foreign assets by U.S. economic agents
Which of the following must be true if a price-searcher firm is operating at the profit-maximizing output rate?
a. The marginal cost of producing the last unit is greater than the marginal revenue derived from its sale. b. The marginal cost of producing the last unit is no greater than the marginal revenue derived from its sale. c. The total cost of producing all units is no greater than the total revenue derived from the sale of the units. d. The total cost of producing all units is less than the total revenue derived from the sale of the units.