According to monetarists, an expansionary fiscal policy is a weak stabilization tool because:
A. the asset demand for money varies inversely with the rate of interest.
B. government borrowing to finance a deficit will raise the interest rate and reduce private
investment.
C. government borrowing will reduce the supply of money in circulation and depress the GDP.
D. government borrowing to finance a deficit will lower interest rates, increase money
balances, and lower velocity.
B. government borrowing to finance a deficit will raise the interest rate and reduce private
investment.
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"If the currency drain increases, the monetary base decreases." Explain whether the previous statement is correct or incorrect
What will be an ideal response?
The level of saving in Japan has historically been high relative to the level of domestic investment. Based on this information, we would expect that
A) Japan's net exports have been relatively high. B) Japan's capital inflows are positive. C) Japan's private saving is greater than its public saving. D) Japan's net foreign investment has been relatively low.
The FTC is
A) the act that prevents producers from driving out smaller competitors by means of selected discriminatory price cuts. B) the commission that investigates unfair competitive practices such as misleading advertising. C) an agency which has been set up to regulate the federal government. D) the agency set up to regulate hospitals.
TRUE
What will be an ideal response?