The policy ineffectiveness proposition (PIP) argument states that under certain circumstances, neither expansionary demand-side fiscal policy nor expansionary monetary policy is effective at achieving macroeconomic goals
Indicate whether the statement is true or false
True
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International trade has strong effects on income distributions. Therefore, international trade
A) will tend to hurt some groups in each trading country. B) is beneficial to everyone in both trading countries. C) will tend to hurt one trading country. D) will tend to hurt everyone in both countries. E) will be beneficial to all those engaged in international trade.
According to some economists and policy makers, the solution to Spain’s high youth unemployment is to
a. reduce government-mandated wages, which would allow it to reduce government spending. b. increase government-mandated wages, which would allow it to reduce government spending. c. increase government-mandated wages, which would allow it to increase government spending. d. reduce government-mandated wages, which would allow it to increase government spending.
The lines drawn to establish Federal Reserve Districts were based on:
A. solely population distribution in 1914. B. economic and political forces as well as population distribution in 1914. C. solely economic forces that existed in 1914. D. economic and political forces that existed in 1914.
Explain how exchange rate policies affected economies during the Great Depression
What will be an ideal response?