The Federal Reserve econometric model estimates that a 1 percent increase in the money supply will
A) increase real GDP by 1 percent after 3 years.
B) increase real GDP by 2 percent in 3 years.
C) increase real GDP by 3 percent 3 years.
D) have no effect on real GDP after 2 years.
A
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Countries with high real GDP tend to have ________ infant mortality rates and ________ literacy rates than countries with low real GDP.
A. lower; higher B. higher; higher C. higher; lower D. lower; lower
The United States provides a reasonable illustration of
A. a mixed economy. B. a pure market system. C. a government-dominated economy. D. a manufacturing economy. E. a transitioning economy.
Which of the following statements is true of economic growth?
A) Countries with inclusive institutions are likely to grow faster than countries with extractive institutions. B) In comparison to countries with extractive institutions, economic growth in countries with inclusive institutions is more likely to stagnate in the long run. C) Countries with extractive institutions are likely to grow faster than countries with inclusive institutions. D) Countries with extractive institutions are likely to grow at the same rate as countries with inclusive institution.
The LM curve becomes steeper if there is __________ in the interest-sensitivity of __________ demand
A) an increase; money B) an increase; investment C) a decrease; money D) a decrease; investment