If desired investment spending is relatively sensitive to changes in interest rates, then monetary policy could be very in reducing expenditure in expanding useful because it would be during inflationary periods and expenditure during recessionary periods. O a. Very ineffective, very effective. O b. Very ineffective, very ineffective. O c. Very effective; very effective. Od. Very effective, ineffective. O e Somewhat effective; very ineffective.

If desired investment spending is relatively sensitive to changes in interest rates, then monetary policy could be very in reducing expenditure in expanding useful because it would be during inflationary periods and expenditure during recessionary periods. O a. Very ineffective, very effective. O b. Very ineffective, very ineffective. O c. Very effective; very effective. Od. Very effective, ineffective. O e Somewhat effective; very ineffective.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Let's say that consumer credit balances are low, leaving lots of money to spend--way more than in the past. The result in the long run would be in the price level and in real output. O an increase, an increase O no change, an increase O an increase, a decrease O an increase, no change O None of the listed options is correct.
Raising the federal funds rate the aggregate demand curve so that equilibrium real GDP and the price level decreases; increases; rises O b. increases; increases; falls decreases; decreases; rises O d. increases; increases; rises O e decreases; decreases; falls
Suppose the price of crude oil increases and we produce just enough crude oil for our own consumption. On impact, our will shift upward and T will be than our target n*. If our central bank wants to keep the same t*, it has to interest rates. AST lower; raise O b. ASt higher; cut ADTT lower; cut O d. ASTt higher; raise
7
If Americans want to go to Rio to see the Olympics, which of the following would be NOT be true O The price of the Brazilian Real rises O The Dollar appreciates as compared to the Brazilian Real O Supply of dollars increases in the world market O The demand of Brazilian Reals would increase
3
In the short run, if the Federal Reserve adds liquidity to the economy, then... O A. the real interest rate decreases. OB. the risk-free rate decreases. O C. both A. and B. O D. neither A. nor B.
Suppose there is a simultaneous fiscal expansion and monetary contraction. We know with certainty that: Select one: O O O O O a. output will increase. b. output will decrease. c. the interest rate will increase. d. the interest rate will decrease. e. both output and the interest rate will increase.
Suppose the economy is initially in long-run equilibrium. The Fed decides to increase the required reserve ratio. In the short-run, this contractionary monetary policy will cause: O A. A shift from SRAS₂ to SRAS, and a movement to point B, with a lower price level and higher output. OB. A shift from AD₁ to AD₂ and a movement to point B, with a higher price level and higher output. O C. A shift from SRAS, to SRAS₂ and a movement to point A, with a higher price level and the same output. O D. A shift from AD₂ to AD, and a movement to point D, with a lower price level and lower output. 122 120- 118- 116- 114- 112- 110- 108- 106- 104- 102- 100- 98- 96- 94- 92- 90- -O 0 Price Level LRAS B 4 6 8 10 12 Real GDP (trillions of 2000 dollars) SRAS₂ SRAS₁ AD2 AD1 14 16
(Figure: Market for Pants) Suppose that the world price of a pair of pants is $40. According to the figure, international trade will lead to in the domestic producer surplus and in the domestic consumer surplus. Price 100 (Domestic supply 50 Domestic demand 50 100 Quantity of pants (in thousands) an increase; a decrease a decrease; a decrease a decrease; an increase an increase; an increase
When the Fed raises the federal funds rate, the US dollar and net exports O a. appreciates; decreases O b. does not change; decreases Oc does not change; does not change d. appreciates; increases O e. depreciates; decreases
1. A change in autonomous spending results to a shift of the LM curve either to the left or right. O a. False; movement along the IS curve O b. False; movement along the LM curve O c. True O d. False; shift of the IS curve 2. Which of the following statements is true? 3. O a. The goods and money markets can never be in equilibrium. O b. The goods and money markets are in equilibrium at the points where the money market is in equilibrium. O c. The goods and money markets are in equilibrium at their point of intersection only. O d. The goods and money markets are in equilibrium at the points where the goods market is in equilibrium. Which of the following describes the steepest investment schedule? O a. 1-450-8(3) O b. 1=450-2(3) O c. 1=450-9(3) O d. 1=450-5(3)