According to the monetarists,
a. stable growth in the money supply is needed for economic stability.
b. aggregate demand is unstable, mostly because of unstable investment demand.
c. there is a need for fiscal policies to stabilize output.
d. stable money growth is not needed for the economy to be stable.
A
You might also like to view...
Everything else held constant, in the market for reserves, when the federal funds rate is 5%, lowering the discount rate from 5% to 4%
A) lowers the federal funds rate. B) raises the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect on the federal funds rate.
Since Social Security benefits are paid from current contributions, the system is a
A) privatized system. B) overfunded system. C) "pay-as-you-go" system. D) defined contribution system.
Suppose a bank lends you $1,000 to purchase a car. Which of the following correctly represents the changes in the bank's balance sheet before you spend the money?
a. Assets: loans, +$1,000 . Liabilities and net worth: checking deposits, +$1,000 b. Assets: loans, -$1,000 . checking deposits, +$1,000 . Liabilities and net worth: no change c. Assets: loans, +$1,000 . checking deposits, -$1,000 . Liabilities and net worth: no change d. Assets: checking deposits, +$1,000 . Liabilities and net worth: loans, +$1,000 e. Assets: checking deposits, +$1,000 . Liabilities and net worth: loans, -$1,000
The automatic stabilizers are:
a. Powerful engines that can move nations closer to full employment and price stability. b. Most beneficial to nations that are far away from their ideal economic position. c. Most beneficial to nations that are close to the ideal economic position. d. Very beneficial to nations regardless of whether they are far above or far below full employment.