Which of the following provides the most accurate description of monetary policy?
a. the deliberate control of the money supply to achieve macroeconomic goals
b. the use of the government's regulatory powers to improve economic efficiency
c. the government provision of goods to improve economic efficiency
d. the use of government taxation and expenditures to achieve macroeconomic goals
A
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________.
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
A government program that attempts to stimulate domestic production of a good in which the country has a natural comparative advantage because of its domestic resources is an example of a(n) ________ policy
A) primary-export-led B) import-substitution development C) outward-looking development D) linkage-effect
The Plaza Accord of 1985 announces that the
A) G-5 countries will intervene in the foreign exchange market to bring about a dollar appreciation. B) G-7 countries will intervene in the foreign exchange market to bring about a dollar depreciation. C) G-5 countries will intervene in the foreign exchange market to bring about a dollar depreciation. D) G-7 countries will intervene in the foreign exchange market to bring about a DM depreciation. E) G-5 countries will not intervene in the foreign exchange market unless the dollar needs to appreciate.
According to Keynes, which of the following is always true at macro equilibrium?
A. The economy achieves full employment B. Aggregate demand is inadequate C. Prices are at the appropriate level D. Aggregate demand equals aggregate supply