A) can be implemented quickly and most of its impact on aggregate demand occurs very soon after policy is implemented. B) can be implemented quickly, but most of its impact on aggregate demand occurs months after policy is implemented. C) cannot be implemented quickly, but once implemented most of its impact on aggregate demand occurs very soon afterward. D) cannot be implemented quickly and most of its impact on aggregate demand occurs months after policy is implemented. A) can be implemented quickly and most of its impact on aggregate demand occurs very soon after policy is implemented. B) can be implemented quickly, but most of its impact on aggregate demand occurs months after policy is implemented. C) cannot be implemented quickly, but once implemented most of its impact on aggregate demand occurs very soon afterward. D) cannot be implemented quickly and most of its impact on aggregate demand occurs months after policy is implemented.

A) the relation between the price and interest rate of an asset. B) the risk of an asset relative to its selling price. C) the ease with which an asset is converted into a medium of exchange. D) the sensitivity of investment spending to changes in the interest rate. A) the relation between the price and interest rate of an asset. B) the risk of an asset relative to its selling price. C) the ease with which an asset is converted into a medium of exchange. D) the sensitivity of investment spending to changes in the interest rate.

Exam 16: The Influence of Monetary and Fiscal Policy on Aggregate Demand

Which of the following tends to make the size of a shift in aggregate demand resulting from an increase in government purchases smaller than it otherwise would be?

(Multiple Choice)

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Question 181

Figure 34-14 -Refer to Figure 34-14. Initial equilibrium exists at point A. A decline in prices will cause households to _ their desired money holdings, moving the interest rate to _.

(Short Answer)

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Question 182

If the investment accelerator from an increase in government purchases is larger than the crowding-out effect, then

(Multiple Choice)

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Question 183

If the stock market crashes, then

(Multiple Choice)

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Question 184

Shifts in the aggregate-demand curve can cause fluctuations in

(Multiple Choice)

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Question 185

If it were not for the automatic stabilizers in the U.S. economy,

(Multiple Choice)

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Question 186

Monetary policy

(Multiple Choice)

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Question 187

If the price level rises, then

(Multiple Choice)

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Question 188

When taxes increase, the interest rate

(Multiple Choice)

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Question 189

An increase in households' desired money holding causes an) _ in interest rates. This causes an) _ in investment spending and aggregate demand.

(Short Answer)

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Question 190

The idea that expansionary fiscal policy has a positive affect on investment is known as

(Multiple Choice)

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Question 191

Which of the following are effects of an increase in government spending financed by a tax increase?

(Multiple Choice)

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Question 192

Changes in aggregate demand can cause fluctuations in ___ and _ in the short run, and only __ in the long run.

(Short Answer)

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Question 193

In the short run, open-market purchases

(Multiple Choice)

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Question 194

Initially, the economy is in long-run equilibrium. Aggregate demand then shifts leftward by $50 billion. The government wants to increase its spending in order to avoid a recession. If the crowding-out effect is always one- third as strong as the multiplier effect, and if the MPC equals 0.6, then by how much do government purchases have to increase in order to offset the $50 billion leftward shift?

(Multiple Choice)

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Question 195

Figure 34-7 -Refer to Figure 34-7. Which of the following is correct?

(Multiple Choice)

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Question 196

If the Fed conducts open-market purchases, then which of the following quantities increases)?

(Multiple Choice)

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Question 197

A European recession that reduces U.S. net exports by $50 billion may ultimately lead to a $_____ billion reduction in aggregate demand if the MPC is 0.75.

(Short Answer)

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Question 198

Suppose foreigners find U.S. goods and services more desirable for some reason other than a change in the exchange rate. Which policies could be used to offset the resulting change in output?

(Multiple Choice)

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Question 199

Liquidity refers to

(Multiple Choice)

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Question 200

Showing 181 - 200 of 510

Which of the following tends to make the size of a shift in aggregate demand resulting from an increase in government purchases smaller than it otherwise would be?

Figure 34-14 -Refer to Figure 34-14. Initial equilibrium exists at point A. A decline in prices will cause households to _ their desired money holdings, moving the interest rate to _.

If the investment accelerator from an increase in government purchases is larger than the crowding-out effect, then

If the stock market crashes, then

Shifts in the aggregate-demand curve can cause fluctuations in

If it were not for the automatic stabilizers in the U.S. economy,

Monetary policy

If the price level rises, then

When taxes increase, the interest rate

An increase in households' desired money holding causes an) _ in interest rates. This causes an) _ in investment spending and aggregate demand.

The idea that expansionary fiscal policy has a positive affect on investment is known as

Which of the following are effects of an increase in government spending financed by a tax increase?

Changes in aggregate demand can cause fluctuations in ___ and _ in the short run, and only __ in the long run.

In the short run, open-market purchases

Figure 34-7 -Refer to Figure 34-7. Which of the following is correct?

If the Fed conducts open-market purchases, then which of the following quantities increases)?

A European recession that reduces U.S. net exports by $50 billion may ultimately lead to a $_____ billion reduction in aggregate demand if the MPC is 0.75.

Suppose foreigners find U.S. goods and services more desirable for some reason other than a change in the exchange rate. Which policies could be used to offset the resulting change in output?

Liquidity refers to

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters

Exam 16: The Influence of Monetary and Fiscal Policy on Aggregate Demand

Which of the following tends to make the size of a shift in aggregate demand resulting from an increase in government purchases smaller than it otherwise would be?

Figure 34-14 -Refer to Figure 34-14. Initial equilibrium exists at point A. A decline in prices will cause households to _____ their desired money holdings, moving the interest rate to _____.

If the investment accelerator from an increase in government purchases is larger than the crowding-out effect, then

If the stock market crashes, then

Shifts in the aggregate-demand curve can cause fluctuations in

If it were not for the automatic stabilizers in the U.S. economy,

Monetary policy

If the price level rises, then

When taxes increase, the interest rate

An increase in households' desired money holding causes an) _____ in interest rates. This causes an) _____ in investment spending and aggregate demand.

The idea that expansionary fiscal policy has a positive affect on investment is known as

Which of the following are effects of an increase in government spending financed by a tax increase?

Changes in aggregate demand can cause fluctuations in _____ and _____ in the short run, and only ____ in the long run.

In the short run, open-market purchases

Figure 34-7 -Refer to Figure 34-7. Which of the following is correct?

If the Fed conducts open-market purchases, then which of the following quantities increases)?

A European recession that reduces U.S. net exports by $50 billion may ultimately lead to a $_____ billion reduction in aggregate demand if the MPC is 0.75.

Suppose foreigners find U.S. goods and services more desirable for some reason other than a change in the exchange rate. Which policies could be used to offset the resulting change in output?

Liquidity refers to

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters

Figure 34-14 -Refer to Figure 34-14. Initial equilibrium exists at point A. A decline in prices will cause households to _ their desired money holdings, moving the interest rate to _.

An increase in households' desired money holding causes an) _ in interest rates. This causes an) _ in investment spending and aggregate demand.

Changes in aggregate demand can cause fluctuations in ___ and _ in the short run, and only __ in the long run.