A reduction in interest rates by the Fed with the intention of reducing a recessionary gap is called:
A. monetary tightening.
B. autonomous monetary policy.
C. contractionary monetary policy.
D. expansionary monetary policy.
Answer: D
You might also like to view...
One of the primary determinants of planned real investment spending is the
A) rate of real government spending. B) rate of real saving. C) expectation of future profits. D) rate of real consumption spending.
Under a fixed exchange rate system, if an appreciation in the value of a country's currency develops, the monetary authorities ________
A) will gain international reserves B) buy the domestic currency in foreign exchange markets C) sell foreign exchange in foreign exchange markets D) will lose international reserves
The demand for orthodontists' services falls as the proportion of the population that obtains braces falls. It may take several years before the new long-run equilibrium for the orthodontic labor market is attained
In the meantime, the orthodontic labor market experiences a A) shortage. B) quality decrease. C) surplus. D) excess demand.
An increase in the money supply may __________ total expenditures, leading to a __________ shift of the AD curve
A) increase; rightward B) increase; leftward C) decrease; rightward D) decrease; leftward