Monetary stimulus is only helpful to an economy:
A. that is experiencing high inflation.
B. that is in recession.
C. experiencing significant negative externalities.
D. with few public goods.
Answer: B
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Which of the following situations is least likely to involve mutual interdependence?
A) Canada is thinking about banning all imported beef from the United States. B) Octavia is thinking about trading in her Toyota Prius for a BMW 220i. C) Walmart is considering moving up the start-time for its Black Friday sales to 12:01 AM on Thanksgiving day. D) McDonald's is thinking about lowering all its menu prices by 50 percent.
In the above figure, when the efficient quantity of gloves is produced, the total producer surplus is
A) $3,000. B) $15,000. C) $22,500. D) $45,000.
Suppose the Fed bought $150 million of U.S. securities from the public. The reserve requirement is 20 percent, and there are no initial excess reserves. A few weeks later, if the public's holdings of currency are constant and the banks have loaned all excess reserves, the money supply will increase by
a. $150 million. b. $300 million. c. $600 million. d. $750 million.
Opportunity cost exists because of
A) poverty. B) scarcity. C) greed. D) self-interest.