It can be shown using the IS-LM-FX model that a temporary expansion in the supply of money is effective in:
A) raising rates of interest.
B) raising the rate of unemployment.
C) combating temporary downturns in the economy.
D) increasing consumer confidence.
Ans: C) combating temporary downturns in the economy.
You might also like to view...
The curve showing the short-run relationship between the ________ and the ________ is called the Phillips curve
A) unemployment rate; inflation rate B) exchange rate; real interest rate C) price level; real GDP D) nominal interest rate; real interest rate
In the specific factors model, labor is defined as a(an)
A) mobile factor. B) specific factor. C) fixed factor. D) variable factor. E) intensive factor.
Changes in income tax receipts ______.
a. increase the effect of major upswings in GDP, but decrease the effect of major downswings in GDP b. increase the effect of major downswings in GDP, but decrease the effect of major upswings in GDP c. increase the effect of both major upswings and major downswings in GDP d. decrease the effect of both major upswings and major downswings in GDP
Possible problems with consumer interviews include:
A. a non-random sample B. the identification problem C. response bias D. both a and b E. both a and c