Agreeing with Keynesian economists, monetarists believe that the economy is subject to disequilibrium that must be corrected by government action
a. True
b. False
Indicate whether the statement is true or false
False
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If the Fed wants to lower the money supply
A) it should lower the discount rate. B) it should buy bonds. C) it should lower the reserve requirement. D) it should sell bonds.
What does a bank do when they have excess reserves?
Which of the following is an important ingredient for the achievement of efficient economic organization?
a. highly restrictive exchange rate controls b. secure property rights and political stability c. high and variable rates of inflation d. high marginal tax rates
Which of the following is most effective under a fixed exchange-rate regime?
A. Fiscal policy if there is a high capital mobility B. Monetary policy if there is a low capital mobility C. Fiscal policy if there is a low capital mobility D. Monetary policy if there is a high capital mobility