According to the theory of the political business cycle, the fed expands the money supply before presidential elections to stimulate the economy and favor the incumbent administration
a. True
b. False
Indicate whether the statement is true or false
True
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A game in which each player adopts its dominant strategy
A) will not lead to an equilibrium. B) can never result in a Nash equilibrium. C) could result in a Nash equilibrium. D) must be a cooperative game.
Which of the following is not considered a factor that influences supply?
A) Technology. B) Production taxes and subsidies. C) The number of buyers. D) Resource prices.
The production possibilities curve represents the maximum feasible production combinations resulting from
A) the mix of current resources that utilizes all available inputs using current technology. B) a fixed amount of demand by consumers. C) the lack of trade-offs in production. D) the lack of technology used in production.
Under the adaptive expectations hypothesis, how will a shift to a more expansionary monetary policy affect the economy?
a. In the short run, the real rate of output will be unaffected, but in the long run, it will increase. b. In the short run, the real rate of output will increase, but in the long run, it will be unchanged. c. There will be a permanent increase in the real rate of output, but the inflation rate will also be a little higher. d. In the short run, the impact on the real rate of output is uncertain, but in the long run, output will increase.