Which of the following pairs of lags are typically shorter for monetary policy than for fiscal policy?
a. The recognition lag and the implementation lag
b. The effectiveness lag and the decision-making lag
c. The decision-making lag and the implementation lag
d. The implementation lag and the effectiveness lag
e. The recognition lag and the effectiveness lag
c
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Why has the cartel in diary farming not been broken up?
a. Organized crime is used to enforce a dairy compact. b. The dairy industry is exempt from anti-trust laws. c. Consumers do not mind paying higher prices for milk. d. Economic studies indicate that to do so would decrease efficiency.
The problem associated with endangered populations of migratory birds is the
A) common property problem. B) free rider problem. C) deadweight loss problem. D) inefficient production problem.
In foreign exchange markets, the effect of an increase in the supply of dollars on the value of the dollar is the same as that of: a. an increase in the supply of foreign currencies. b. a decrease in the supply of foreign currencies. c. a decrease in the demand for dollars
d. either (b) or (c)
In the Keynesian transmission mechanism, if investment is completely interest-insensitive, then an increase in the money supply will
A) cause total expenditures and aggregate demand to increase. B) cause total expenditures and aggregate demand to decrease. C) have no impact on total expenditures and aggregate demand. D) cause total expenditures to increase and aggregate demand to decrease. E) cause total expenditures to decrease and aggregate demand to increase.