Actions by the Federal Reserve to influence the level of GDP are known as
A) cyclical policy. B) monetary policy. C) procyclical policy. D) fiscal policy.
B
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The scarcity of physical resources is far more fundamental to the study of economics than the scarcity of funds.
Answer the following statement true (T) or false (F)
If the price of gasoline rose 50% during a period in which the general price level rose 100%, economic theory would predict
A) a decline in the quantity of gasoline demanded. B) an increase in the quantity of gasoline demanded. C) a decrease in the demand for gasoline. D) an increase in the supply of gasoline. E) less driving by motorists.
A __________ may agree to waive a restrictive covenant, especially if doing so appears to make the loan __________
A) borrower; no riskier B) borrower; riskier C) lender; no riskier D) lender; riskier
According to the permanent-income hypothesis, a transitory increase in a person's income will
A) increase consumption more than savings. B) increase savings more than consumption. C) be smoothed out to where the increases in consumption and savings are roughly equal. D) have the same effect on consumption as a permanent increase in income.