If investment spending is relatively insensitive to changes in the interest rate, then the most effective expansionary policy would be
a. a reduction in required reserves.
b. Fed purchases of government securities.
c. a personal income tax increase.
d. a personal income tax cut.
d
You might also like to view...
Social surplus is maximized in a(n) ________
A) perfectly competitive market B) monopolistically competitive market C) monopoly market D) oligopoly market
The Fed is institutionally independent. A major advantage of this is that monetary policy
a. is subject to regular congressional scrutiny. b. will often offset fiscal policy. c. is not controlled by politicians. d. is usually coordinated with fiscal policy.
Knowledge is an example of a
a. public good. b. private good. c. common resource. d. club good.
Post 9/11, air travel industry in the U.S. economy saw an increase in demand, which led to a sharp rise in employment opportunities
Indicate whether the statement is true or false