An expansionary monetary policy may cause asset prices to rise, thereby reducing the likelihood of financial distress and causing consumer durable and housing expenditures to rise. This monetary transmission mechanism is referred to as
A) the household liquidity effect.
B) the wealth effect.
C) Tobin's q theory.
D) the cash flow effect.
A
You might also like to view...
An increase in the marginal propensity to save (MPS)
A) increases autonomous consumption. B) increases the value of the multiplier. C) increases the marginal propensity to consume (MPC). D) none of the above.
In the long run, the beneficiaries of farm price supports are
a. tenant farmers b. consumers c. taxpayers d. milk drinkers e. early owners of specialized resources
Income tax reports in QuickBooks include all of the following except:
a. Income Tax Preparation report b. Income Tax Detail report c. Income Tax Summary report d. Income Tax Mapping report
The quantity theory of money is based on the formula that
A. Y = P*V/Ms. B. P = Ms*V/Y. C. V = P*Y*Ms. D. Ms= P*V/Y.