According to Baumol and Blinder, the lag between the time a policy is implemented and the time it affects aggregate demand is
a. longer for fiscal than monetary policy.
b. longer for monetary than fiscal policy.
c. approximately equal for both.
d. influenced mainly by the size of the multiplier.
b
You might also like to view...
After 1926, a decline in total building construction occurred even though building costs remained fairly stable
Indicate whether the statement is true or false
Which of the following is an in-kind transfer payment?
a. Medicaid b. Social Security c. workers' compensation d. unemployment insurance e. Temporary Assistance to Needy Families
Which of the following is a characteristic of an oligopoly?
a. Mutual interdependence in pricing decisions. b. Independent pricing decisions. c. Lack of control over prices. d. All of these are true.
Crowding in can be defined as
a. an increase in the budget deficit increases demand so that investment increases. b. tax incentives on investment encourage capital formation, an increase in aggregate supply. c. consumption rises in a recovery, which increases demand for investment. d. the budget deficit falls enough to lower interest rates to stimulate investment.