Exam 15: The Debate over Monetary and Fiscal Policy

The most common estimate of the value of transactions used to estimate velocity is

The velocity of circulation is the

Which of the following will reduce the velocity of circulation of the money stock?

Which of the following would tend to decrease velocity?

Government spending affects aggregate demand directly,and tax changes affect aggregate demand indirectly.Therefore,changes in

Advocates of fixed rules believe that politicians focus more on re-election than on sound policy.

A look at the historical data indicates that velocity for M1

Velocity can be calculated as the ratio of the value of transactions to

If you divide the amount of nominal GDP by the stock of money,you have computed the

The speed with which money circulates through the economy is called the

The equation of exchange states that the money value of GDP must be equal to the product of the money stock times its velocity.

According to the simple quantity theory of money,a change in the money supply of 9.6 percent would lead to a

When recessions occur,advocates of small government should recommend

The monetary stimulus post-September 11,2001,achieved some desired effects within the year.

When something happens to the economy,monetarists ask two questions:

The contemporary consensus with regard to stabilization policy is that

Historically,most harmful bubbles are characterized by

How does government expenditure discourage some private investment?

Critics of the Fed's unconventional policies in 2009 and 2010 argued that determining which financial institutions would be bailed out and which would be allowed to fail was a political decision that rightfully belonged to Congress.

Although asset price bubbles seem obvious after the fact,it is much more difficult to draw such a conclusion before the fact.