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1- According to traditional Keynesians, monetary policy is ineffective in affecting the economy during a recession because A-an increase in the money...
1- According to traditional Keynesians, monetary policy is ineffective in affecting the economy during a recession because
A-an increase in the money supply will have little impact on interest rates.
B-an increase in the money supply will only lead to higher interest rates.
C-an increase in the money supply will only lead to lower investment spending.
D-an increase in the money supply will raise the amount of government debt.
2- Suppose the actual federal funds rate is below the rate implied by a particular inflation goal. In this situation, the Taylor rule implies that
A-monetary policy is expansionary.
B-monetary policy is contractionary.
C-monetary policy is neither expansionary or contractionary.
D-fiscal policy is contractionary.
3- According to Keynes, the impact of an increase in the money supply is
A-a lower interest rate and a larger growth in real GDP.
B-a lower interest rate and a smaller growth in real GDP.
C-a higher interest rate and a larger growth in real GDP.
D-a higher interest rate and a smaller growth in real GDP.
4- A tariff is a
A-legal limit on sales of a foreign product in the domestic market.
B-regulation of the quality of a foreign product sold in the domestic market.
C-tax on sales of a foreign product in the domestic market.
D-voluntary limit on sales of a foreign product in the domestic market.