Monetary policy actions by the Fed are:
A. More effective in a restrictive direction than they are in an expansionary direction
B. More effective in an expansionary direction than they are in a restrictive direction
C. Equally effective in both expansionary and restrictive directions
D. Only effective when coupled with fiscal policy actions
A. More effective in a restrictive direction than they are in an expansionary direction
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Consider a small open economy in equilibrium with a zero current account balance. What happens to national saving, investment, and the current account balance in equilibrium if
(a) future income rises? (b) business taxes rise? (c) government expenditures decline temporarily? (d) the future marginal product of capital rises?
Economics is the study of decisions made necessary by the problem of unlimited wants and limited means to satisfy them
a. True b. False Indicate whether the statement is true or false
Consider the following problems: overcrowded public highways, overfishing in the ocean, polluted air, and the near-extinction of the wild rhinoceros. What do these problems have in common?
a. Private markets could easily solve them if governments left the markets alone. b. They would all go away if the government sponsored an intensive public-information campaign. c. They are all the result of a failure to establish clear property rights over something of value. d. They are all the result of a failure of corrective taxes.
In general, ________ a higher rate of return for a given level of risk than ________ can offer.
A. any other type of saving has; a portfolio B. a portfolio has; individual assets C. individual assets have; a portfolio D. a portfolio has; any other type of saving