Trace the cause-effect chain that results from an expansionary monetary policy.
What will be an ideal response?
An expansionary monetary policy will cause bank reserves to grow and the money supply to expand. Interest rates will fall and this encourages investment spending. Real GDP will rise by a multiple of the increase in investment.
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The General Agreement on ___________ and Trade (GATT) was established to provide a forum in which nations could come together to negotiate reductions in tariffs and other barriers to trade.
a. Travel b. Taxes c. Tariffs d. Transfers
The division of labor helps to explain why: a. consumers need not have a deep knowledge of the goods they consume
b. consumers can only consume those goods of which they have an in-depth knowledge. c. domestic industries need protection from foreign competition. d. government intervention is required for the market to work efficiently.
Which of the following is a difference between M1 and M2? a. M1 includes the most liquid assets, while the assets included in M2 are comparatively less liquid
b. M2 includes the most liquid assets, while the assets included in M1 are comparatively less liquid. c. M2 includes bank accounts from which money can be withdrawn with personal checks, while M1 includes bank accounts from which money cannot be withdrawn with personal checks. d. M2 includes bank accounts from which money can be withdrawn with personal checks, while M1 includes bank accounts from which money can be withdrawn with debit cards.
The law commonly known as the ______________ can impose an 80-day “cooling-off period” to allow time for negotiations to proceed without the threat of a work stoppage.
a. Fair Labor Standards Act b. Clayton Act c. Taft-Hartley Act d. Peonage Act