Fiscal expansion under fixed exchange rates will have what temporary effect?
A) the money supply will decrease.
B) output will decrease.
C) the exchange rate will increase.
D) the exchange rate will decrease.
E) there will be no effect.
D
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According to Romer
A) capital drives economic growth. B) invention drives economic growth. C) government drives economic growth. D) ideas drive economic growth.
The process of research and development
A. always leads to useful products. B. almost never leads to useful products. C. often involves a waste of resources. D. is usually conducted in governmental laboratories.
Money market deposit accounts are included in
A) only M1. B) only M2. C) M1 and M2. D) neither M1 nor M2.
One important difference between early and later Keynesians is that
a. early Keynesians were more skeptical of the use of monetary policy. b. early Keynesians were more skeptical of the use of fiscal policy. c. early Keynesians believed that monetary policy was responsible for the Great Depression. d. early Keynesians thought that fluctuations in investment and not consumption drove the Great Depression. e. both a and d.