The goal of contractionary monetary policy is to:
A. reduce interest rates to stimulate the economy.
B. increase interest rates to stimulate the economy.
C. reduce interest rates to slow down the economy.
D. increase interest rates to slow down the economy.
D. increase interest rates to slow down the economy.
You might also like to view...
How are the following events likely to affect an economy's production possibilities curve?
a. An increase in the working population of the economy b. The import of better production technology c. A natural disaster that destroys some of the economy's resources d. Emigration of workers to other countries
When a competitive equilibrium is achieved in a market
A) the total net benefit to society is maximized. B) the total benefits to consumers are equal to the total benefits to producers. C) economic surplus equals the deadweight loss. D) all individuals are better off than they would be if a price ceiling or price floor was imposed by government.
When the price of a good decreases, the budget constraint does not change.
Answer the following statement true (T) or false (F)
What does research tell us about the impact of Ricardian equivalence effects on the economy?
A) Ricardian equivalence effects may exist, but their magnitudes are unclear. B) There is no evidence of any impact of Ricardian equivalence effects. C) Ricardian equivalence effects have a huge impact on aggregate demand. D) There is a very small impact on both aggregate demand and aggregate supply.