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

49. Expansionary fiscal policy will cause the IS curve to shift to the right.

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 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

When a country ’s balance of payments deficit, what policies can be adopted in order to restore the balance of payments ( ). A: Let the local currency depreciate B: Let the local currency depreciate C: Adopting tight monetary policy D: Let the local currency appreciate E: Taking an expansionary fiscal policy F: Adopting an expansionary monetary policy

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

The causes of wage-push inflation are ( ). A: Wage price spiral B: Strong labor union C: Incompletely competitive labor market D: Expansionary income policy

Which of the following is not an example of expansionary monetary policy? A: An open-market purchase of securities B: A reduction in reserve ratio C: A reduction in income tax rates D: A reduction in the discount rate

10) Which of the following is not an example of expansionary monetary policy? A: . An open-market purchase of securities. B: . A reduction in reserve ratio. C: . A reduction in income tax rates. D: . A reduction in the discount rate.

Which business cycle theory suggests that an expansionary monetary or fiscal policy should be used to revive an economy from a recession? A: Monetarist theory. B: Keynesian theory. C: New classical theory.