Multiple Choice
During inflation,the optimal discretionary fiscal policy would be _____.
A) to decrease taxes
B) to increase government spending
C) to decrease the reserve ratio
D) to increase taxes
E) to decrease the market interest rate
Correct Answer:
Verified
Correct Answer:
Verified
Q120: Which of the following is not consistent
Q121: The short-run Phillips curve shows that:<br>A)the economy
Q122: The initial Phillips curve relationship implied that
Q123: According to the rational expectations school,people base
Q124: According to economists of the rational expectations
Q126: If the price level in an economy
Q127: An economy experiencing an expansionary gap:<br>A)operates in
Q128: The selection of a new policy takes
Q129: _,the time-inconsistency problem gets eliminated.<br>A)When an inflation
Q130: In its original form,the Phillips curve depicted