The implementation lag is _____ for fiscal than for monetary policy; the lag before the effects of monetary policy on real output and unemployment is ____ than for its effects on real output and unemployment:
a. Longer, long and variable
b. Longer; relatively short and predictable
c. Shorter; long and variable
d. Shorter; relatively short and predictable
a
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The relationship that tells us how much a person intends to spend at various levels of income is
A) the expenditure function. B) the consumption function. C) the buying function. D) the spending function.
An asset is ________
A) equal in value to its corresponding liabilities and net worth B) a debt for the owner of the asset C) a net outflow from the revenues of a producing firm D) anything that can be owned and has value
Ms. Smith has $10,000 in her saving account that pays her a 3% interest rate. If the inflation rate is 5%, Ms. Smith will
a. gain buying power because both the interest rate and the inflation rate are positive. b. lose buying power because the inflation rate is positive. c. lose buying power because the inflation rate is greater than the interest rate. d. lose buying power because the interest rate is low.
If expectations are rational,
A. a predictable change in inflation can make the expected inflation rate deviate from the actual rate. B. unemployment can exceed the full-employment rate even in the long run. C. the difference between the actual inflation rate and the expected inflation rate must be a purely random number. D. the inflation rate cannot be reduced without a period of high unemployment because the Phillips curve is downward sloping.