If the President and Congress agree to balance the budget during a recession, then the appropriate monetary policy is
A. no change from the current policy.
B. reduce the growth of the money supply.
C. constant growth of the money supply.
D. increase the growth of the money supply.
Answer: D
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Higher prices may serve the public interest when
A. there is a shortage of goods or services available. B. there is an equal distribution of traffic on alternate routes. C. higher prices never serve the public interest. D. lower prices signal scarcity.
If protective import-restricting quota are imposed by a country, all of the following groups benefit EXCEPT
A) domestic producers in the affected industry. B) domestic consumers in the affected industry. C) employees of domestic producers in the affected industry. D) importers that are able to obtain the rights to sell imported items in the affected industry.
The main advantage of the Eurocurrency market is that investment funds cannot be subject to foreign government controls
a. True b. False Indicate whether the statement is true or false
Suppose the market clearing price for gasoline is $2.25 per gallon. Now suppose that policy makers pass a law requiring that the maximum price that can be charged is $2.0 per gallon. Such a situation is an example of
A) a price control that will lead to a surplus of gasoline on the market. B) a price floor that will lead to a shortage of gasoline on the market. C) a price ceiling that will lead to a shortage of gasoline on the market. D) a price floor that will lead to a surplus of gasoline on the market.