Expansionary monetary policy will:

A. Reduce the lending capacity for banks.
B. Raise interest rates.
C. Encourage people to borrow more money.
D. Reduce the equilibrium price level.


C. Encourage people to borrow more money.

Economics

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Which of the following statements best describes government options during a recession?

a. During a recession, the government will want to implement contractionary fiscal policy, but may be unable to do so because such a policy would lead to a budget deficit. b. During a recession, the government will want to implement discretionary fiscal policy, but may be unable to do so because such a policy would lead to a budget surplus. c. During a recession, the government will want to implement contractionary fiscal policy, but may be unable to do so because such a policy would lead to a budget surplus. d. During a recession, the government will want to implement expansionary fiscal policy, but may be unable to do so because such a policy would lead to a budget deficit.

Economics

Older Americans living on a pension and therefore on a fixed income, tend to be made

What will be an ideal response?

Economics

In a market economy, the government's ability to coerce is beneficial in the following cases, except in:

A. Correcting for positive externalities B. Correcting for negative externalities C. Producing public goods D. Fixing resource prices

Economics

Most empirical testing in macroeconomics uses data beginning from about 1950.

Answer the following statement true (T) or false (F)

Economics