Monetary policy involves the use of money and credit controls to:
A. Move the economy along the aggregate demand curve.
B. Move the economy along the aggregate supply curve.
C. Shift the aggregate demand curve.
D. Shift the aggregate supply curve.
C. Shift the aggregate demand curve.
You might also like to view...
The quantity theory of money implies that the price level will be stable (no inflation or deflation) when the growth rate of the money supply equals
A) 0. B) the growth rate of real GDP. C) the growth rate of the velocity of money. D) the growth rate of the price level.
Monetarists view government intervention in the economy as
A) necessary to maintain full employment. B) unnecessary and potentially damaging. C) effective because it stimulates capital formation. D) leads to consistently higher employment and output.
The Federal Trade Commission Act was passed in:
a. 1890. b. 1914. c. 1929. d. 1933.
Which of the following is true of a beneficial supply shock?
What will be an ideal response?