Refer to Table 15-3. Consider the hypothetical information in the ...

[abern]

Refer to Table 15-3. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy.
 
  If the Fed wants to keep real GDP at its potential level in 2017, it should
  A) buy Treasury securities. B) decrease income taxes.
  C) sell Treasury securities. D) decrease the required reserve ratio.

Question 2

It is ________ difficult to effectively time fiscal policy than monetary policy because ________.
 
  A) more; fiscal policy can be quickly decided and changed
  B) more; fiscal policy takes longer to implement
  C) less; monetary policy takes longer to implement
  D) less; monetary policy takes longer to decide and change

[yasmina]

Answer to Question 1

C

Answer to Question 2

B

[abern]

Excellent

[rachel]

Gracias!