Automatic stabilizers do not include
a. taxes
b. interest rates
c. transfer payments
d. forward-looking behavior
e. enhancing the multiplier effect
E
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If you were the Chairman of the Fed and faced a recession, you would most likely
a. increase commercial bank reserves by raising the discount rate b. increase commercial bank reserves by buying government securities c. decrease commercial bank reserves by raising the discount rate d. decrease commercial bank reserves by selling government securities e. decrease commercial bank reserves by lowering the legal reserve requirement
given the list of assets which is most liquid
a. $500 worth of General Motors common stock b. $500 worth of General Motors bonds c. a $500 traveler's check d. a one-ounce gold coin
An assumption used in the quantity theory of money is that
A. nominal Gross Domestic Product (GDP) is constant. B. the money supply is constant. C. the price level is constant. D. velocity is constant.
Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next?
What will be an ideal response?