The effect time lag of fiscal policy refers to
A) the time needed for Congress to enact a policy.
B) the delay in recognizing an economic problem.
C) the time between the onset of a policy and when the policy has impact on the economy.
D) the difficulty in getting the President and the Congress to agree on an appropriate policy.
C
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The effect of an export tariff on a large country is to ________ the terms of trade
A) always improve B) sometimes improve C) leave unchanged D) sometimes worsen E) always worsen
In a capitalist market economy, the decision to save is made by the same people who make the major investment decisions
a. True b. False Indicate whether the statement is true or false
A sign that Country A is under pressure to devalue its currency is its:
a. Overall balance is in surplus. b. Financialaccount is in deficit. c. Overall balance is in deficit. d. Reserves account is in deficit (i.e., negative). e. All of the above.
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and real GDP in the context of the Three-Sector-Model? a. The quantity of real loanable funds per time period falls and real
GDP falls. b. The quantity of real loanable funds per time period rises and real GDP rises. c. The quantity of real loanable funds per time period rises and real GDP remains the same. d. The quantity of real loanable funds per time period and real GDP remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.