What is the difference between fiscal policy and monetary policy?
What will be an ideal response?
Fiscal policy involves changes in federal taxes and purchases and is implemented by Congress and the President. Monetary policy involves changes in the money supply and interest rates and is implemented by the Federal Reserve. Both are intended to achieve macroeconomic objectives.
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The period of expansion ends with a ________ and the period of recession ends with a ________
A) business cycle peak; business cycle peak B) business cycle trough; business cycle trough C) business cycle peak; business cycle trough D) business cycle trough; business cycle peak
The ratio of bank capital to bank assets is known as the bank's
A) leverage ratio. B) net interest margin. C) return on equity. D) return on capital.
If Xt and Yt are cointegrated, then the OLS estimator of the coefficient in the cointegrating regression is
A) BLUE. B) unbiased when using HAC standard errors. C) unbiased even in small samples. D) consistent.
Efficient production means producing
a. less output when costs are high and more output when costs are low b. at the lowest possible cost regardless of the quantity of output c. at any point on the production possibilities curve d. no more than what society needs e. in excess of what society needs