The Federal Reserve is anticipating a contractionary period in the economy. The Fed decides to engage in open market operations to stimulate the economy. This action is
A) active policy making.
B) passive policy making.
C) the monetary rule.
D) Phillips policy making.
A
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Evidence suggests that credit-rating agencies ________ exploited conflicts of interest because ________
A) have not; it would cause their ratings to lose credibility and thus have a lower value in the marketplace B) have not; they would have an increase in profits in the long-run C) have; it would cause their ratings to lose credibility and thus have a lower value in the marketplace D) have; they would have an increase in profits in the long-run
A(n) _____ implies an increase in human capital
a. addition of a new machine that laborers use in production b. increase in wealth c. more educated labor force d. increase in the number of schools in a country e. increase in the quantity of the capital used by a firm
The equilibrium level of GDP is always accompanied by full employment and stable prices
a. True b. False Indicate whether the statement is true or false
In a closed economy, GDP is $1000, government purchases are $200, and consumption is $700 . If the government has a budget surplus of $25, what are investment, taxes, private saving, and national saving?