5 Monetary policy affects the economy wit long lag, in part becausehalproposals to change monetary policy must go through both the House and Senate before being sent to thea)president.b)changes in interest rates primarily influence consumption spending, and households make consumptionplans far in advance.c)changes in interest rates primarily influence investment spending, and firms make investment plans far inadvance.monetary policy works through changes in interest rates, and the Fed does not have the ability to changed)interest rates qWhich of the following is an example of crowding out?a)A decrease in private savings increases interest rates, causing investment to fall.b)A decrease in the money supply increases interest rates, causing investment to fall.c)An increase in taxes increases interest rates, causing investment to fall.d)An increase in government spending increases interest rates, causing investment to fall

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proposals to change monetary policy must go through both the House and Senate before being sent a) president. O b) changes in interest rates primarily influence consumption spending, and households make consumpi plans far in advance. c) changes in interest rates primarily influence investment spending, and firms make investment plans advance.

proposals to change monetary policy must go through both the House and Senate before being sent a) president. O b) changes in interest rates primarily influence consumption spending, and households make consumpi plans far in advance. c) changes in interest rates primarily influence investment spending, and firms make investment plans advance.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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