This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Assume that the government decides to use fiscal or monetary policy to stimulate the economy and ... (Read 93 times)

Capo

  • Hero Member
  • *****
  • Posts: 545
on: Jun 30, 2018
Assume that the government decides to use fiscal or monetary policy to stimulate the economy and that this action comes as a surprise to most individuals and businesses. In the short run, the result will be
 
  A) an increase in aggregate demand and a fall in the price level.
  B) a decrease in aggregated demand and a rise in the price level.
  C) a decrease in the average duration of unemployment and a decrease in the unemployment rate.
  D) an increase in the average duration of unemployment and an increase in the unemployment rate.

Question 2

A person keeps 500 in his home in order to be prepared for some unforeseen future event. This reflects his
 
  A) speculative demand for money. B) asset demand for money.
  C) liquidity demand for money. D) precautionary demand for money.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Chou

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

D


Capo

  • Member
  • Posts: 545
Reply 2 on: Jun 30, 2018
:D TYSM

AngeliqueG

  • Member
  • Posts: 343
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

This graphic illustrates the original systems model of politics advanced by David Easton. Politics This graphic illustrates the original systems model of politics advanced by David Easton. Politics
Figure 7.1 shows the rapid decline in the trust of Americans in government since the 1960s. This de Figure 7.1 shows the rapid decline in the trust of Americans in government since the 1960s. This de
Many thought ideological politics was over in the United States, but 2012 showed strong ideological Many thought ideological politics was over in the United States, but 2012 showed strong ideological
The Importance in the World Fossil Fuel Economy The Importance in the World Fossil Fuel Economy
The constitutional division of Powers Between the National Government and the States The constitutional division of Powers Between the National Government and the States
Key foreign policy agencies Key foreign policy agencies
Video: Pasteur's Experiment

For a complete list of videos, visit our video library