The time between the policy decision and the subsequent change in policy instruments is called the
A) data lag, the time required to collect and analyze data.
B) effectiveness lag, the time required for the change in money supply to affect real output.
C) legislative lag, the time required for policymaking body to make decisions.
D) transmission lag, the time between the change in policy and the change in policy instruments.
D
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Gasoline is a normal good. If the price of gasoline falls, a consumer buys more gasoline because of
A) only an income effect. B) only a substitution effect. C) an increase in the marginal rate of substitution. D) both an income effect and a substitution effect.
A disadvantage of using public works to reduce unemployment is that
a. it is very difficult to end a government spending program once it develops a political constituency. b. large public works may require years to plan and get underway. c. increased government spending may not be appropriate by the time the public works project beings. d. All of these.
Our balance on current account
A. has recently turned negative. B. has been negative for years. C. has recently turned positive. D. has been positive for years.
________ was introduced in October 2008 to clean up banks
A) Liquidity facilities B) Wholesale funding C) TARP D) Fire sale