An expansionary monetary policy:
a. decreases inflation in the long run
b. increases unemployment in the long run.
c. increases potential GDP in the long run.
d. increases inflation in the long run.
d
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The process of combining many different debt instruments like home mortgages into a pool of hundreds of thousands of individual contracts and then selling new financial instruments is called
A) Securitization. B) Leveraging. C) Sub-priming. D) NINJA loaning.
Among the pioneers of real business cycle theory is ________
A) Edward Prescott B) Robert Lucas C) Robert Solow D) Paul Volcker
Which of the following is not true about wealth taxation?
a. Wealth taxation can be achieved through sales taxation. b. Wealth taxation may be a way of taxing a stock that generates a difficult to measure flow of services. c. Wealth taxation can be a method of taxing unrealized capital gains. d. Wealth taxation may be a method to discourage the accumulation of wealth.
The school of thought that emphasizes the possibility that an economy can be in equilibrium at less than full employment with inflation and argues that by managing aggregate demand, government can achieve the most acceptable combination of unemployment and inflation is the
a. Keynesian b. neo-Keynesian c. monetarist d. supply-side school e. rational expectations school