The basic Keynesian argument for discretionary monetary policy is that
A) monetary policy is the principal cause of business cycles.
B) monetary policy is much more effective than fiscal policy.
C) aggregate demand is unstable and monetary policy can help to stabilize it.
D) reducing unemployment is much more important than reducing inflation.
C
You might also like to view...
The government of Healthyland imposes a tax on sellers of salt. The tax is $0.10 per pound. With no tax, the price of salt is $0.40 per pound. The demand for salt is perfectly inelastic and the elasticity of supply is 1.5
With the tax, the price of salt paid by buyers in Healthyland is A) $0.40 per pound. B) $0.45 per pound. C) $0.35 per pound. D) $0.50 per pound.
When the average total cost is $16 and the total cost is $800, then the number of units the firm is producing is
A) impossible to determine with the information given. B) 12,800. C) 784. D) 50.
What new policy tools for controlling reserve balances did the Fed introduce during the Financial Crisis of 2007-2009?
What will be an ideal response?
Total revenue will fall if
A. demand for a good is inelastic and its price rises. B. demand for a good is elastic and its price rises. C. demand for a good is elastic and its price falls. D. All of the choices are true.