Expansionary monetary policy will
a. often raise real interest rates in the short run.
b. generally reduce aggregate demand in the short run.
c. lead to higher nominal interest rates if the expansionary policy persists over a lengthy time period.
d. lead to a rapid growth of real GDP if the expansionary policy persists over a lengthy time period.
C
You might also like to view...
Refer to Sales Tax. After the tax is imposed, the deadweight loss is equal to
The following questions refer to the accompanying diagram which shows the effects of a sales tax imposed on consumers. The initial price and quantity are P0 and Q0, respectively. After the tax is imposed, the equilibrium quantity is Q1, firms receive the price Ps, and consumers pay the price Pd.
a. area A + D + G.
b. area F + G + H.
c. area E + H.
d. area E + H + J.
The effective rate of protection is
(a) value added with protection divided by value added without protection. (b) value added with protection. (c) value added without protection. (d) (value added with protection minus value added without protection) divided by value added without protection.
The demand for dollars is downward sloping because when dollar appreciates,
a. Foreigners demand more US goods and services b. Foreigners demand fewer US goods and services c. Foreigners demand more dollars d. Foreigners do not change their demand for US goods and services
If the US dollar appreciates in the FOREX, US imports and exports are most likely to change in which of the following ways imports; exports
a increase; remain unchanged b. increase; increase c. increase; decrease d. decrease; remain unchanged e. decrease; decrease