Multiple Choice
Most mainstream macroeconomists oppose a strict requirement to balance the federal budget annually because they conclude that such a requirement would
A) increase real interest rates and drive out investment spending.
B) eliminate monetary policy as a stabilization tool.
C) force government to undertake expansionary fiscal policy during inflation and contractionary fiscal policy during recession.
D) expand the size of the federal government.
Correct Answer:

Verified
Correct Answer:
Verified
Q51: The policy rule recommended by monetarists is
Q52: According to monetarists, discretionary monetary policy has
Q53: The equation of exchange indicates that<br>A)
Q54: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8601/.jpg" alt=" A)
Q55: In the monetarist equation of exchange, MV
Q57: The equation underlying the mainstream view
Q58: Which of the following is a component
Q59: If the money supply rises from $600
Q60: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8601/.jpg" alt=" A)
Q61: The key implication for macroeconomic instability is