Government changes in interest rates to regulate the economy are part of:

A. monetary policy.
B. fiscal policy.
C. debt policy.
D. liability policy.


Answer: A

Economics

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A) There is a $50 billion increase in equilibrium GDP. B) There is a $40 billion increase in equilibrium GDP. C) There is a $40 billion decrease in equilibrium GDP. D) There is a $50 billion decrease in equilibrium GDP.

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A. A B. B C. C D. D 

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On any given day, ________ changes to achieve equilibrium in the money market

A) the nominal interest rate B) the price level C) the real interest rate D) the inflation rate E) real GDP

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Suppose an increase in disposable income from $3 trillion to $3.2 trillion increases consumption from $2.5 trillion to $2.6 trillion. The marginal propensity to consume is _____

a. 0.1 b. 0.2 c. 0.5 d. 0.8 e. 0.9

Economics