Multiple Choice
Which of the following statements do opponents of active stabilization policy believe?
A) Fiscal policy cannot stabilize the economy even in theory.
B) Fiscal policy has no impact in the long run.
C) The effects of monetary policy may be long lived.
D) The Bank of Canada should try to fine-tune the economy.
Correct Answer:
Verified
Correct Answer:
Verified
Q11: According to liquidity preference theory, what shape
Q12: In a small open economy with perfect
Q13: During recessions, how do automatic stabilizers tend
Q14: Which of the following defines the government
Q16: If there is excess money supply, what
Q18: Which of the following is most likely
Q20: What do open-market sales do to the
Q33: An increase in the price level shifts
Q36: Assume the money market is initially in
Q52: What is the difference between monetary policy