Answer the following statements true (T) or false (F)
1. An expansionary monetary policy is less effective in influencing aggregate demand compared to a restrictive monetary policy.
2. Monetary policy, unlike fiscal policy, does not have any time lags.
3. The major advantages of monetary policy include its flexibility, speed, and political palatability.
4. The effects of expansionary monetary policy are strengthened by a liquidity trap.
1. True
2. False
3. True
4. False
You might also like to view...
Suppose the government decided to tighten monetary policy and decrease government expenditures. In the short run in the Keynesian model, the effect of these policies would be to ________ the real interest rate and ________ the level of output
A) lower; decrease B) lower; have an ambiguous effect on C) have an ambiguous effect on; decrease D) raise; decrease
Consumer surplus increases as
a. the market price of a good decreases b. firms exit the market c. fewer consumers purchase a good d. taxes on a good increase e. a good is no longer available for sale
________ involves a country selling its exports at a price lower than its cost of production.
A. An export quota B. Having an absolute advantage C. Dumping D. Having a comparative advantage
Which statement about money is most correct?
A) Money is a new invention and only includes dollar bills and coins. B) Money is a new invention and can include anything that is accepted as a means of payment. C) Money has been around for a long time and can include anything that is accepted as a means of payment. D) Money has been around for a long time and only includes dollar bills and coins. E) Money has been around for a long time and only includes checking and savings accounts.