Suppose the Fed increases the money supply. As a result of this, people go out and spend more money on consumer goods, increasing aggregate spending. This is known as a(n)
A) indirect effect of monetary policy. B) direct effect of monetary policy.
C) indirect effect of fiscal policy. D) direct effect of fiscal policy.
B
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
The president of the ________________________ holds a permanent seat on the FOMC
A) United States B) Federal Reserve District Bank of New York C) Federal Reserve District Bank of San Francisco D) U.S. Senate banking committee E) none of the above
Recall the Application about the best speed at which to sail an ocean cargo ship to answer the following question(s).Weighing the benefits and costs of the different speeds at which to sail an ocean cargo ship addresses the economic concept known as:
A. the principle of opportunity cost. B. the marginal principle. C. the principle of voluntary exchange. D. the principle of diminishing returns.
Asymmetric information in the health insurance market causes prices to ________ and the mix of insured customers to become ________ healthy on average.
A. rise; less B. fall; more C. rise; more D. fall; less