For the most part, fiscal policy affects the economy in the short run while monetary policy primarily matters in the long run
a. True
b. False
Indicate whether the statement is true or false
False
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If a country has a flexible exchange rate, will high rates of inflation, though generally harmful, price this country's goods off world markets? Explain.
What will be an ideal response?
Exhibit 6A-6 Consumer equilibrium
?
As shown in Exhibit 6A-6, movement from consumer equilibrium at point Y to point X is caused by a(n):
A. increase in the price of good X. B. decrease in the price of good X. C. increase in the price of good Y. D. decrease in the price of good Y.
Import substitution industrialization in Latin America
A) relied on increased exports. B) provided subsidies for exports. C) shifted the bulk of exports away from primary commodities. D) created disincentives to export.
With reference to the consumption function, the 45-degree line represents
A. all points at which planned real saving is equal to real disposable income. B. all points at which real disposable income is equal to real consumption spending. C. the planned savings function. D. all points at which planned real saving is equal to planned real consumption spending.