Assume the Fed wants to stimulate economic activity through expansionary monetary policy. Which of the following is FALSE?
A: investment spending will increase
B: spending on durable goods will increase
C: aggregate demand will be stimulated
D: the expansionary effect will only be temporary
E: real money balances will increase as we move along the AD-curve from left to right
A: investment spending will increase
B: spending on durable goods will increase
C: aggregate demand will be stimulated
D: the expansionary effect will only be temporary
E: real money balances will increase as we move along the AD-curve from left to right
举一反三
- Which of the following is NOT a result of monetary policy? A: aggregate demand is affected, leading to a change in nominal GDP B: the level of potential GDP will change C: spending on investment and durable consumption goods is affected D: the rates of unemployment and inflation are affected in the short run E: real interest rates will remain unaffected in the long run
- Which of the following policies does NOT affect the long-term growth rate of a nation? A: investment tax credits or any other policy that reduces the cost of capital B: an expansionary fiscal/expansionary monetary policy mix C: increased funding for primary education D: incentives to increase saving E: more funding for research and development
- Which of the following is an effect of expansionary monetary policy A: lower prices. B: lower real output. C: higher employment.
- Which of the following shows the intention of the central bank to implement expansionary monetary policy? A: Increase the scale of rediscount business B: Buy Treasury bonds in the open market C: Increase liabilities to financial institutions D: Buying a lot of foreign exchange on the open market
- In an IS-LM model, an increase in autonomous spending A: is caused by a fall in the interest rate B: will cause a fall in the interest rate C: will lead to an increase in income and the interest rate D: will shift the LM-curve to the right E: is caused by a movement along the IS-curve from left to right