If the Fed believes the inflation rate is about to increase, it should
A. Use a Contractionary fiscal policy to increase the interest rate and shift AD to left
B. Use an expansionary monetary policy to lower the interest rate and shift AD to the right
C. Use a contractionary monetary policy to increase the interest rate and shift AD to the left
C. Use a contractionary monetary policy to increase the interest rate and shift AD to the left
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after-tax income of consumers & personal income less personal taxes
What will be an ideal response?
The term ceteris paribus means
A. all other things remaining constant or equal. B. value-free and testable. C. the greatest good for all. D. the study of scarcity and choice.
An increase in the parameter c, the proportion of money individuals wish to hold as currency, will tend to cause which of the following?
A) an increase in the monetary base (H) B) a reduction in H C) an increase in the money multiplier D) a reduction in the money multiplier
One of the problems with the definition of economic growth is that
A. it does not account for the distribution of income. B. it understates economic growth because it does not account for a higher standard of living. C. it overstates economic growth because it does not account for the reduction in work time. D. it overstates economic growth because it does not account for leisure time.