A liquidity trap exists when a change in the money supply immediately and drastically affects interest rates.
a. true
b. false
Ans: b. false
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"As the saying goes, the only sure things in life are death and taxes. This saying points out the result that everything having to do with taxes is an automatic fiscal policy." Is the preceding analysis correct or incorrect? Explain your answer
What will be an ideal response?
What are the tools that a country can use to restrict international trade?
What will be an ideal response?
The most important tool of monetary policy is:
A. the discount rate. B. open-market operations. C. market interest rates. D. reserve requirement ratios.
Refer to the information provided in Figure 31.2 below to answer the question(s) that follow.
Figure 31.2Refer to Figure 31.2. Point ________ is beyond the production capacity of this economy.
A. A B. B C. C D. D