Eco 111 ch 18 questions well
answered graded A+
Approximately how long does it take a change in monetary policy to influence aggregate
demand - correct answer ✔✔6 months
According to traditional Keynesian analysis, which of the following will increase aggregate
demand the most - correct answer ✔✔100 bil increase in government spending
Advocates for setting monetary policy by rule rather than discretion often argue that - correct
answer ✔✔central bankers with discretion are tempted to renege on their announced
commitments to low inflation
Which of the following is NOT an argument for maintaining a positive rate of inflation - correct
answer ✔✔It increases the variability of relative prices.
Throughout U.S. history, what has been the most common cause of substantial increases in
government debt - correct answer ✔✔wars
Advocates of taxing consumption rather than income argue that - correct answer ✔✔the
current tax code discourages people from saving
The chapter suggests that the economy, like the human body, has "natural restorative powers.
output
increase
decrease
answered graded A+
Approximately how long does it take a change in monetary policy to influence aggregate
demand - correct answer ✔✔6 months
According to traditional Keynesian analysis, which of the following will increase aggregate
demand the most - correct answer ✔✔100 bil increase in government spending
Advocates for setting monetary policy by rule rather than discretion often argue that - correct
answer ✔✔central bankers with discretion are tempted to renege on their announced
commitments to low inflation
Which of the following is NOT an argument for maintaining a positive rate of inflation - correct
answer ✔✔It increases the variability of relative prices.
Throughout U.S. history, what has been the most common cause of substantial increases in
government debt - correct answer ✔✔wars
Advocates of taxing consumption rather than income argue that - correct answer ✔✔the
current tax code discourages people from saving
The chapter suggests that the economy, like the human body, has "natural restorative powers.
output
increase
decrease
