An expansionary policy does not alter:
a. the price level in the short run
b. aggregate demand in the short run.
c. inflation in the long run.
d. unemployment in the long run.
d
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When the exchange rate between dollars and pounds moves from $2 = 1 pound to $1 = 1 pound, we say that the dollar has ________.
A. appreciated B. inflated C. depreciated D. deflated
Indirect finance refers to the flow of funds from savers to borrowers through financial intermediaries
Indicate whether the statement is true or false
Which of the following was not a reason OPEC failed to keep the price of oil high?
a. Over the long run, producers of oil outside of OPEC responded to higher prices by increasing oil exploration and by building new extraction capacity. b. Consumers responded to higher prices with greater conservation. c. Consumers replaced old inefficient cars with newer efficient ones. d. The agreement OPEC members signed allowed each country to produce as much oil as each wanted.
When Germany increased fiscal spending and raised interest rates in the early 1990s,
A) economic growth increased throughout Europe. B) other countries were forced to raise interest rates to stay in the ERM. C) it was unsuccessful in supporting East Germany. D) it forced other countries to devalue their currencies.