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Question
Methods of financing government spending are described by an expression called the government budget constraint, which states the followingA. the government budget deficit must equal the sum of the change in the monetary base and the change in government bonds held by the public.
B. the government budget deficit must equal the difference between the change in the monetary base and the change in government bonds held by the public.
C. the government budget deficit must equal the difference between the change in the monetary base and the change in government bonds held by the Fed.
D. the government budget deficit must equal the difference between the change in the monetary base and the change in government bonds held by the Treasury.
Answer
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Related questions
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The organization responsible for the conduct of monetary policy in the United States is the
A. Comptroller of the Currency.
B. U.S. Treasury.
C. Federal Reserve System.
D. Bureau of Monetary Affairs.
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A. balanced budgets.
B. rapidly growing money supplies.
C. falling money supplies.
D. constant money supplies.
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Financial institutions that accept deposits and make loans are called
A. exchanges.
B. banks.
C. over-the-counter markets.
D. finance companies.
Q:
Banks, savings and loan associations, mutual savings banks, and credit unions
A. are no longer important players in financial intermediation.
B. since deregulation now provide services only to small depositors.
C. have been adept at innovating in response to changes in the regulatory environment.
D. produce nothing of value and are therefore a drain on society's resources.
Q:
Which of the followings does NOT describe the goods market in the ISLM model?
A. consumption function
B. investment function
C. government spending and tax
D. money demand function
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As bonds become a riskier asset, the demand for money ________ and, all else constant, the equilibrium interest rate ________.
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An autonomous increase in money demand, other things equal, shifts the ________ curve to the ________.
A. IS; right
B. IS; left
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Q:
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A. exceeds; rise; right
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Q:
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A. demand; right
B. demand; left
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Q:
A policy in which the money supply is kept growing at a constant rate regardless of the state of the economy is
A. a Taylor rule.
B. a discretionary policy.
C. a policy rule advocated by monetarists.
D. advocated by activists.
Q:
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B. the Lucas critique.
C. public choice theory.
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Q:
The Lucas critique indicates that
A. advocates of discretionary policies' criticisms of rational expectations models are well-founded.
B. advocates of discretionary policies' criticisms of rational expectations models are not well-founded.
C. expectations are important in determining the outcome of a discretionary policy.
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Q:
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Q:
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Q:
When the economy suffers a permanent negative supply shock and the central bank does not respond by changing the autonomous component of monetary policy, then
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C. output will be lower.
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Q:
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A. potential output falls.
B. the long-run aggregate supply curve shifts leftward.
C. the short-run aggregate supply curve shifts upward.
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Q:
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Q:
With the policy rate set at zero, the rise in expected inflation will lead to a ________ in the real interest
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B. Instead of relying solely on the economy's self-correcting mechanism, much more aggressive fiscal expansions than those of the U.S. (in addition to a substantial monetary easing) served to shift the AD curve back to general equilibrium relatively quickly.
C. The Chinese economy was better able than the U.S. economy to weather the financial crisis with output growth starting to grow earlier and more quickly than that of the U.S.
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E. None of the above.
Q:
Explain and demonstrate graphically the effects of a negative supply shock in both the short-run and long-run.
Q:
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Q:
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A. An increase; appreciate
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A. right; appreciate
B. right; depreciate
C. left; appreciate
D. left; depreciate