Even though the monetary policy is very quick recognize and respond to the coming of a recession than fiscal policy, it has proven in the 2000's to be less affective in avoiding or bring the economy out of the recession because
A. Increased investment by the private sector has not been forthcoming in response to the reduction in interest rates.
B. Consumers have tended to increase saving and decrease consumption.
C. Our economy has increased imports during recessions.
D. The government has imposed fiscal policy to counteract the monetary policy.
A. Increased investment by the private sector has not been forthcoming in response to the reduction in interest rates.
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If a "certificate of convenience and public necessity" protects a monopolist's position, the barrier to entry this firm relies on is called
A) a tariff. B) a government license. C) a patent. D) economies of scale.
The classical economists believed __________ determined savings, while Keynes said it was __________
A) interest rates; income B) income; investment C) investment; interest rates D) interest rates; investment
Fractional reserve banking is a term used to describe a banking system whereby
A) individual banks share a fraction of the total funds deposited in the whole banking system. B) banks are required to quote interest rates in fractions. C) banks hold reserves equal to only a fraction of their deposit liabilities. D) banks hold reserves equal to a multiple of their deposit liabilities; that is, fractional in this case really means multiple. E) banks are required to maintain a certain fraction of their deposits in the form of checkable deposits, a certain fraction of their deposits in the form of savings deposits, etc.
Black-market prices are below equilibrium prices because sellers want to sell large quantities.
Answer the following statement true (T) or false (F)