The transmission lag is the period that elapses between the time fiscal policy is enacted and the time it is put into effect
Indicate whether the statement is true or false
True
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
For anything to be considered money it must be
A) either a commodity or a token, as long as it is generally accepted as a means of payment. B) a valuable commodity, such as gold. C) used in barter transactions. D) a mystical token, such as whale teeth. E) a token, such as a green piece of paper.
How might a decrease in the labor force participation of males be related to the increase in the participation rate for females?
What will be an ideal response?
An decrease in the real interest rate will cause an increase in ________
A) consumption B) planned investment C) net exports D) all of the above E) none of the above