Which of the following is true?
a. Sometimes the Fed moves to partly offset or even neutralize the intended effects of fiscal policy changes
b. If a consensus was reached between fiscal and monetary policy makers, you would not expect contractionary fiscal policy and expansionary monetary policy to be adopted at the same time.
c. If policymakers' timing is off, expansionary monetary policy could cause an inflation problem rather than reducing a high unemployment problem.
d. All of the above are true
d
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All of the following are true statements about the multiplier except
A) The formula for the multiplier overstates the real world multiplier when we take into account the impact of changes in GDP on imports, inflation and the interest rate. B) The larger the MPC, the larger the multiplier. C) The multiplier is the ratio of the change in real GDP to the change in autonomous expenditure. D) The multiplier makes the economy less sensitive to changes in autonomous expenditure.
If the dividend yield is fixed, this is a
a. bond b. partnership c. firm with losses d. common stock e. preferred stock
Which of the following is an example of expansionary fiscal policy?
A. Increase taxes. B. Decrease government spending. C. Increase government spending. D. Increase taxes and decrease government spending equally.
The policy of attempting to obtain a specific low level of inflation over the long run is referred to as:
A) price control. B) inflation targeting. C) the seigniorage policy. D) the minimal inflation policy.