Contractionary monetary policy
What will be an ideal response?
monetary policy that reduces aggregate demand
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Since 1980, ________ are subject to reserve requirements
A) only commercial banks B) only the member institutions of the Federal Reserve C) only nationally chartered depository institutions D) all depository institutions
The interest-rate effect is the impact on real GDP caused by the direct relationship between the interest rate and the:
a. price level. b. exports. c. consumption. d. investment.
What moderates the downturn when the economy heads into recession or moderates the recovery when the economy heads into prosperity?
a. tax transfers b. inventory investment c. the accelerator d. real depreciation e. automatic stabilizers
In general, economists place all factors of production into which three categories?
A. Technology, labor, and capital B. Technology, land, and capital C. Land, labor, and capital D. Land, labor, and technology