Contractionary monetary policy refers to the Fed's decreasing the money supply and decreasing interest rates to decrease real GDP
Indicate whether the statement is true or false
FALSE
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Which one of the following is TRUE?
A) New growth theory suggests that there is no connection between the level of education in a country and its rate of economic growth. B) New growth theory suggests that education benefits only those people who receive it, and not the population as a whole. C) Investments in secondary education produce gains in the form of economic growth. D) Secondary education does not boost economic growth in developing nations, because so much of the workforce remains in agriculture.
What is the national security argument for restricting international trade? What is its flaw?
What will be an ideal response?
A simple deposit multiplier equal to two implies a required reserve ratio equal to
A) 100 percent. B) 50 percent. C) 25 percent. D) 0 percent.
Monetary and fiscal policy making that is carried out in response to a pre-set rule and does not respond to changes in economic activity is known as
A) active policy making. B) discretionary policy making. C) nondiscretionary policy making. D) Keynesian policy making.