In Figure 13-3 above, given the unstable demand for money and a stable commodity demand, a stable output level at C would best be promoted by
A) targeting interest rates by the Fed.
B) decreasing taxes.
C) increasing expenditures by the government.
D) decreasing expenditures by the government.
A
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If an asset can be obtained or disposed of without much risk of losing its nominal value, it is said to be
A) valuable. B) wealth. C) fiduciary. D) liquid.
Who is associated with the following summary of the economic way of thinking: "The theory of economics does not furnish a body of settled conclusions immediately acceptable to policy
It is a method rather than a doctrine, an apparatus of the mind, a technique of thinking which helps its processer draw correct conclusions." A) Adam Smith B) John Maynard Keynes C) President Harry Truman D) Alfred Marshall
Which of the following is NOT a responsibility of the Board of Governors?
A) approving bank mergers B) determining permissible activities for bank holding companies C) carrying out open market operations D) setting the salaries of the presidents and officers of district banks
Which of the following is a predictable, secondary effect of a sharp increase in gasoline prices?
A) The federal government will place a quota on the number of fuel-efficient cars for sale, thus "forcing" consumers to purchase the gas guzzling vehicles. B) Producers will increase the production of fuel-efficient cars. C) the termination of research on the cost-effectiveness of alternative fuels to power automobiles. D) Producers will increase the production of gas guzzling vehicle