Which of the following is a form of monitory policy?
A. Increasing the Money Supply faster than usual during recession.
B. Cutting taxes during a recession
C. Increase government's spending during recession
D. All
E. None
A. Increasing the Money Supply faster than usual during recession.
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Which of the following shifts the entire consumption function upwards?
A) a decrease in the value of consumer durables B) an increase in consumer wealth C) a decrease in consumer confidence D) an increase in income
For each of the following scenarios, state the effect on the debt-to-GDP ratio:
a. The growth rate of the labor force increases. b. The primary deficit increases. c. Total factor productivity decreases. d. Seigniorage decreases. e. The nominal interest rate is constant and the growth rate of the money supply increases. f. The nominal interest rate is not constant and the growth rate of the money supply increases.
A government-sponsored good is one that
A) is desirable to no one but ruled desirable by the court system nonetheless. B) everyone agrees is socially desirable. C) freely competitive markets have determined is socially desirable. D) the political process has determined is socially desirable.
The labor force participation rate:
A. tells us what fraction of the working-age population wants to be working, whether or not they actually have a job. B. typically rises during times of recession, as more people need work. C. is used as an indication of the health of the overall economy. D. All of these are true.