If the central bank increases the money supply, it is conducting
A. fiscal policy.
B. incomes policy.
C. monetary policy.
D. supply-side policy.
Answer: C
You might also like to view...
In the late 1970s, the inflation rate was over 10 percent per year. Many home mortgage lending institutions had mortgages outstanding that had been made in the 1960s at nominal interest rates of around 5 percent per year
Many of these lending institutions failed. What can explain the high failure rate of lenders in the late 1970s?
Another term for the opportunity cost of capital is
A) the normal interest rate. B) the normal rate of return. C) a normal profit. D) a normal wage rate.
Which of the following is an outcome of economic variables not moving in sync with inflation?
a. unintended redistributions of purchasing power b. intentional redistributions of purchasing power c. better long-term planning d. decrease in blurred price signals
Which of the following is an example of a situation where a third party benefits from a market transaction by others?
a. Inoculation against communicable diseases b. An increase in the level of air pollution in neighborhoods near a power plant c. Allowing a chemical company to use a natural lake to discharge waste d. Two firms trading pollution credits to avoid reducing their toxic emissions