With discretionary policy making, fiscal and monetary policies are usually
A) immune to any lag times that might counter their effectiveness.
B) immune to any political overtones.
C) set according to pre-established standards that do not take into account any changes in the economy.
D) undertaken in response to or anticipation of some change in the overall economy.
D
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With average cost pricing, the monopolist
A) earns no accounting profit. B) produces where P = MC. C) earns a normal rate of return for its shareholders. D) does not cover opportunity costs.
Which of the following helps explain why real GDP is inversely related to the price level within the framework of the AD-AS model?
a. As prices fall, domestic consumers have an incentive to buy more of the cheaper goods and services. b. As prices fall, the monetary authorities will have to increase the money supply, which will lead to an increase in the quantity of goods and services purchased. c. As prices fall, the government will have to reduce taxes, which will lead to an increase in the quantity of goods and services purchased. d. As prices fall, the wealth of people holding the fixed quantity of money increases, causing them to expand their purchases of goods and services.
The Banking Act of 1935 changed the name of the _______________ to the Board of Governors of the Federal Reserve System
A) Federal Open Market Committee B) Board of Monetary Affairs C) Central Bank Board D) Federal Reserve Board
Erin reduces the price of her handmade boxes by 10 percent. The following month the sale of this product increases 9 percent. As a result, Erin’s income for this month most likely ______.
a. decreased slightly b. decreased sharply c. increased slightly d. increased sharply