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QUESTION 4 The "supply-side" economic theory that President Reagan sought to implement early in his administration...
In the early 1980s, the Reagan administration had very tight monetary policy (decrease in money supply),...
In the early 1980s, the Reagan administration had very tight monetary policy (decrease in money supply), a big tax cut, and a big increase in government spending. The net effect was an increase in aggregate demand. [15 points] a. Use well labeled diagrams for the Keynesian cross (aggregate demand and supply) money market, FX market, and IS-LM curves to show what happened to the nominal interest rate, the exchange rate, consumption, investment, government spending, and net exports. b. What effect...
1. Paul Krugman is a: monetarist economist. real business cycle economist. rational expectations economist. supply-side economist. Keynesian economist. 2. The (original) Keynesian primary policy for a...
1. Paul Krugman is a: monetarist economist. real business cycle economist. rational expectations economist. supply-side economist. Keynesian economist. 2. The (original) Keynesian primary policy for a recession is: increasing money supply/decreasing interest rates. decreasing the money supply/increasing interest rates. increasing government spending/cutting taxes. increasing government spending/increasing money supply. increasing government spending/raising taxes. 3. The original classical school dominated macro economic thinking: 1800s to 1933. 1759-1793. 1997-2017. 1933-1980.
"Current economic parameters are determined by past rational expectations" is a property of the__________ school of thought....
"Current economic parameters are determined by past rational expectations" is a property of the__________ school of thought. monetarist real business cycle rational expectations/new classical New Keynesian classical Y in the equation of exchange equals: nominal GDP. velocity. real GDP. money stock. The (original) Keynesian primary policy for a recession is: increasing money supply/decreasing interest rates. decreasing the money supply/increasing interest rates. increasing government spending/cutting taxes. increasing government spending/increasing money supply. increasing government spending/raising taxes. Per class notes, Supply side economics is best...
1. According to the classical dichotomy, when the money supply decreases, ______ will decrease. a. real...
1. According to the classical dichotomy, when the money supply decreases, ______ will decrease. a. real GDP b. consumption spending c. the price level d. investment spending 2. In Zimbabwe in the 1990s the government resorted to printing money to pay the government employees because: a. it was a means to avoid price controls. b. of high rates of inflation. c. of declining tax revenues. D of a need to stimulate the economy. 3. To end a hyperinflation, a government...
Macroeconomics: Intermediate Theory/ Calc-based 4. Consider an economy that abides by a Mundell Fleming model. Capital...
Macroeconomics: Intermediate Theory/ Calc-based
4. Consider an economy that abides by a Mundell Fleming model. Capital is imperfectly mobile, prices are perfectly sticky in the short run, and the exchange rate is fixed. Assume that the current exchange rate is at its tar get and the current domestic interest rate is equal to the foreign interest rate. Suppose the local central bank wants to stimulate economic activity by increasing the supply of money through conventional open market oper- ations. Which...
In an economy where the money supply and aggregate demand have been decreased by the Central...
In an economy where the money supply and aggregate demand have been decreased by the Central Bank, you know that the Central Bank is using 答案选项组 a contractionary monetary policy. an expansionary monetary policy. a loose monetary policy. follow expansionary fiscal policy How does monetary policy affect the market? 答案选项组 Monetary policy has a more of an impact on consumption than investment. Monetary policy has a more of an impact on government spending than investment. Monetary policy has an indirect...
18. Which of the following policies would come from a Marxist view of the economy? (a)...
18. Which of the following policies would come from a Marxist view of the economy? (a) government stabilization through changing spending, taxes, and interest rates since the economy will not automatically restore full employment. b) a socialist economy with government ownership of banks and businesses since economic instability is based on the exploitation of workers. (c) the need to regulate the banking system to avoid financial crisis. (d) laissez-faire or free market policies since the economy will tend towards full...
FISCAL POLICY IN THEORY: March, 2020: we are on the verge of Congress and the President...
FISCAL POLICY IN THEORY: March, 2020: we are on the verge of Congress and the President passing legislation that will empower the federal government to spend an unprecedented amount of EXTRA money not seen since World War 2 ---- in order to address the pandemic but also to help cushion the blow financially of perhaps ten or twenty million Americans --- or more --- losing their jobs, and thus suffering a drop in income. The scale of the 2020 recession...
1) of the Central Bank of Kuwait puts in place an expansionary monetary policy, its decision...
1) of the Central Bank of Kuwait puts in place an expansionary monetary policy, its decision is based on A) the fact that the economy is at ful employment B) Expectation of excessive inflation in the future C) the fact that the economy is in an expansion D) Unemployment level is high 2) When the interest rate is set at a very low rate A) the opportunity cost of holding money is very low B) the money demand will shift...
Macroeconomic Multiple Choice Questions Answer All 10 Questions* 1) If the Central Bank of Kuwait puts...
Macroeconomic Multiple Choice Questions
Answer All 10 Questions*
1) If the Central Bank of Kuwait puts in place an expansionary monetary policy, its decision is based on A) the fact that the economy is at full employment B) Expectation of excessive inflation in the future C) the fact that the economy is in an expansion D) Unemployment level is high 2) When the interest rate is set at a very low rate A) the opportunity cost of holding money is...
Macroeconomics: Intermediate Theory/ Calc-based
4. Consider an economy that abides by a Mundell Fleming model. Capital is imperfectly mobile, prices are perfectly sticky in the short run, and the exchange rate is fixed. Assume that the current exchange rate is at its tar get and the current domestic interest rate is equal to the foreign interest rate. Suppose the local central bank wants to stimulate economic activity by increasing the supply of money through conventional open market oper- ations. Which...
18. Which of the following policies would come from a Marxist view of the economy? (a) government stabilization through changing spending, taxes, and interest rates since the economy will not automatically restore full employment. b) a socialist economy with government ownership of banks and businesses since economic instability is based on the exploitation of workers. (c) the need to regulate the banking system to avoid financial crisis. (d) laissez-faire or free market policies since the economy will tend towards full...
1) of the Central Bank of Kuwait puts in place an expansionary monetary policy, its decision is based on A) the fact that the economy is at ful employment B) Expectation of excessive inflation in the future C) the fact that the economy is in an expansion D) Unemployment level is high 2) When the interest rate is set at a very low rate A) the opportunity cost of holding money is very low B) the money demand will shift...
Macroeconomic Multiple Choice Questions
Answer All 10 Questions*
1) If the Central Bank of Kuwait puts in place an expansionary monetary policy, its decision is based on A) the fact that the economy is at full employment B) Expectation of excessive inflation in the future C) the fact that the economy is in an expansion D) Unemployment level is high 2) When the interest rate is set at a very low rate A) the opportunity cost of holding money is...
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