Expansionary monetary policy, by increasing the money supply, also increases interest rates and recessionary gaps.

a. true
b. false


Ans: b. false

Economics

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If you are buying a bond that is newly issued by the corporation, you are buying it in the primary market

Indicate whether the statement is true or false

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Which of the following firms is most likely to shut down?

a. TicToc, Inc. has a total revenue of $500,000 and variable costs of $450,000 b. LWT, Inc. has a total revenue of $3 million and variable costs of $3.2 million. c. Sparkle, Inc. has a total revenue of $4 million and variable costs of $3.7 million. d. Motif, Inc has a total revenue of $6 million and variable costs of $6 million.

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Which of the following would NOT be included in the expenditure approach to calculating GDP?

What will be an ideal response?

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Answer the following statements true (T) or false (F)

1. The "stimulus package" that the government implemented in response to the Great Recession of 2007-09 made the cyclically-adjusted budget of the U.S. have a very large positive balance in that time period. 2. The so-called "recognition lag" associated with fiscal policy is a result of how slowly the U.S. Congress moves. 3. The concept of a "political business cycle" implies a misuse of fiscal policy making it a source of economic instability. 4. The impact of an expansionary fiscal policy may be strengthened if it crowds out some private investment spending.

Economics