• 2022-06-06
    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
  • E

    内容

    • 0

      The following is the expansionary monetary policy is( ). A: Increase money supply B: The central bank conducts reverse repo operations on the open market C: Reduce the rediscount rate D: Lower the benchmark deposit rate E: Central Bank issues bonds

    • 1

      According to the assignment rule, which of the following policy mixes<br/>is appropriate for a country with high inflation, a balance of<br/>payments deficit, and fixed exchange rates? ____. A: Expansionary fiscal policy and expansionary monetary policy B: Expansionary fiscal policy and contractionary monetary policy C: Contractionary fiscal policy and expansionary monetary policy D: Contractionary fiscal policy and contractionary monetary policy

    • 2

      An increase in the target federal funds rate will most likely lead to an increase in: A: business investment in fixed assets. B: consumer spending on durable goods. C: the foreign exchange value of the U.S. dollar.

    • 3

      Which<br/>one of the following is consistent with a government’s policy<br/>objective to expand the level of economic activity?() A: An<br/>increase in taxation B: An<br/>increase in interest rates C: An<br/>increase in personal savings D: An<br/>increase in public expenditure

    • 4

      By lowering short-term interest rates, a central bank can stimulate economic activity A: since it encourages more investment spending B: since more durable consumption goods will be bought C: but only in the short run D: but it may lead to a higher price level E: all of the above