Which of the following examples would enhance the effectiveness of the Fed’s monetary policy?
a. The Fed wants an expansionary policy; the fiscal policy makers want to raise interest rates.
b. The Fed wants a contractionary policy; the fiscal policy makers want to increase exports
c. The Fed and fiscal policy makers advocate different ways to deal with a recession.
d. The Fed and fiscal policy makers both prioritize curbing inflation.
d. The Fed and fiscal policy makers both prioritize curbing inflation.
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When each firm is liable for taxes on total sales but can claim the taxes already paid by suppliers as a credit against liability we are using the
A. reserve method. B. chain method. C. invoice method. D. VAT method.
Define efficiency wages
A decision tree is used when modeling:
A. a prisoner's dilemma. B. simultaneous decisions. C. any type of game. D. games in which timing matters.
When the government increases its demand for loanable funds, it causes the demand:
A. for loanable funds curve to shift to the right, which increases interest rates. B. of loanable funds curve to shift to the left, which decreases interest rates. C. of loanable funds curve to shift to the right, which decreases interest rates. D. for loanable funds curve to shift to the left, which increases interest rates.