Suppose that the economy is currently at full employment. All other things being equal, if the government implements expansionary fiscal policy, then the appropriate monetary policy is
a. no change from the current policy.
b. reduce the growth of the money supply.
c. constant growth of the money supply.
d. increase the growth of the money supply.
b
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According to the United Nations, the largest expected growth in population for the coming decades will occur on which continent?
A) South America B) Africa C) Europe D) North America
The above table gives some cost data for Peter's Pickles. Peter's fixed cost is $20. The marginal cost of increasing output from 3 to 4 barrels of pickles is
A) $25. B) $75. C) $20. D) $50.
Immediately following a business cycle "peak" comes a
A) "trough." B) "recession." C) "expansion." D) "recurrence."
A business owner makes 50 items a day. He spends 8 hours in producing those items. If hired elsewhere he could have earned $10 an hour. The item sells for $10 each. Production occurs seven days a week. If the explicit costs total $10,000 a month, the accounting profit for the month equals:
a. $1,760 b. $2,240 c. $11,760 d. $5,000