If the Fed believes the economy is about to fall into recession, it should
A. Use an expansionary monetary policy to lower the interest rate and shift AD to the right
B. Use an expansionary fiscal policy to increase the interest rate and shift AD to the right
C. Use a contractionary monetary policy to lower the interest rate and shift AD to the right
A. Use an expansionary monetary policy to lower the interest rate and shift AD to the right
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Which of the following is true?
a. The close link between personal income and provision of productive resources to others provides individuals with a strong incentive to develop skills. b. Income can be taxed away from some and transferred to others without altering the incentive to engage in productive activities. c. Holding technology constant, the size of the economic pie available for distribution among economic participants is fixed. d. In a democratic setting, the government's tax and spending policies can redistribute income without influencing the size of the economic pie. e. Both b and d are correct.
The classical economists believed that wages, prices, and interest rates were flexible in both the upward and the downward direction
Indicate whether the statement is true or false
A country opens up to trade and imports clothing. In the clothing market, surplus has been redistributed from
A) producers to consumers. B) consumers to producers. C) government to consumers. D) producers to government.
The principal policy-maker of the Federal Reserve is the
A) Chairman of the Federal Reserve Board of Governors. B) president of the New York Federal Reserve bank. C) president of the Washington, D.C. Federal Reserve bank. D) Comptroller of the Currency.