Which of the following is a monetary policy tool that is meant to reduce interest rates and stimulate the economy?
a) Easy money
b) Tight money
c) Restrictive monetary policy
d) Contractionary monetary policy
Ans: a) Easy money
You might also like to view...
Which of the following is most likely to benefit from government established price floors in agriculture?
A) large farm owners and corporate farms B) small farmers C) cattle ranchers D) low income farmers
An increase in planned savings, all else held constant, will always result in
a. a slowdown in the circular flow of income. b. an increase in the circular flow. c. an increase in planned investment spending. d. an increase in the price level.
The marginal revenue curve of a perfectly competitive firm
A) has a vertical intercept equal to exactly one-half of the vertical intercept for the demand curve. B) lies below the demand curve and above the average revenue curve. C) intersects the average revenue curve from above at the maximum point of the average revenue curve. D) is also the demand curve faced by the firm.
With demand-pull inflation in the extended AD-AS model, there is:
A. A decrease in aggregate demand and a decrease in unemployment that eventually increases nominal wages B. An increase in aggregate demand and a decrease in unemployment that eventually decreases nominal wages C. An increase in aggregate demand and an increase in unemployment that eventually decreases nominal wages D. An increase in aggregate demand and a decrease in unemployment that eventually increases nominal wages