According to the Austrian view of the business cycle, if expansionary monetary policy pushes the interest rate to an artificially low level, the result will be
a. a long-term increase in output and employment.
b. malinvestment and an unsustainable economic boom, followed by a recession.
c. an increase in demand stimulus, that will expand employment and lead to a rapid increase in long-term economic growth.
d. a temporary increase in the inflation rate, followed by a sustainable expansion in output and employment.
B
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Moving from a point inside the production possibilities frontier to a point on the production possibilities frontier, the opportunity cost of producing more of the good on the horizontal axis
A) increases. B) is infinite. C) decreases. D) is 0. E) is constant.
Blacks and whites go into the education system more equal than they come out
Indicate whether the statement is true or false
M1 is the most liquid form of money.
Answer the following statement true (T) or false (F)
A nation's average annual real GDP growth rate is 5%. Based on the "rule of 72," the approximate number of years that it would take for this nation's real GDP to double is
A. 14.4 years. B. 12.5 years. C. 10 years. D. 16.2 years.