Monetary policy could be procyclical if the Federal Reserve
A) is late recognizing that a recession has begun and conducts expansionary monetary policy.
B) is quick to recognize that a recession has begun and conducts expansionary monetary policy.
C) is late recognizing that a recession has begun and does not conduct expansionary monetary policy.
D) is quick to recognize that a recession has begun and does not conduct expansionary monetary policy.
Answer: A
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Which of the following is an example of an activity that creates an external cost?
i. a smoker emitting second-hand smoke ii. sulfur emitting from a smoke stack iii. throwing garbage on the roadside A) i only B) i and ii C) iii only D) ii and iii E) i, ii, and iii
A group of firms that collude to limit competition is called a(n):
a. conglomerate. b. oligopoly. c. cartel. d. kinked demand. e. market concentration.
Which statement is true?
A. Our merchandise trade deficit and our overall trade deficit are identical. B. Our merchandise trade deficit is greater than our overall trade deficit. C. Our overall trade deficit is greater than our merchandise trade deficit. D. None of these statements are true.
In the 1960s, there was significant debate between Keynesians and monetarists. Explain several aspects of this debate
What will be an ideal response?