A decrease in the discount rate would be an example of
A. expansionary fiscal policy.
B. contractionary monetary policy.
C. expansionary monetary policy.
D. contractionary fiscal policy.
Answer: C
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Refer to Figure 9-2. With the tariff in place, the United States consumes
A) 9 million pounds of rice. B) 15 million pounds of rice. C) 31 million pounds of rice. D) 42 million pounds of rice.
In the Activists' Paradise, to increase real GDP without affecting the interest rate, it is necessary to change
A) only fiscal policy and shift the IS curve. B) only monetary policy and shift the LM curve. C) fiscal and monetary policies and shift both IS and LM. D) more policy instruments than policymakers are actually able to manipulate.
The constant velocity of money in the quantity equation implies that any increase in the money supply has to lead directly to:
A. an increase in P. B. an increase in V. C. an increase in Y. D. a decrease in P.
Figure 17-10
Refer to . As a result of the tariff, there is a deadweight loss that amounts to
a.
B.
b.
E.
c.
D + F.
d.
B + D + E + F.