« previous next »

Author Question: According to the policy irrelevance proposition A) monetary policy can effectively reduce the ... (Read 51 times)

luminitza

  • Hero Member
  • *****
  • Posts: 555
on: Jun 30, 2018
According to the policy irrelevance proposition
 
  A) monetary policy can effectively reduce the rate of unemployment in the short run.
  B) workers are not rational in the long run.
  C) expansionary monetary policy will only lead to a higher rate of inflation in the long run.
  D) the Phillips curve slopes upward, not downward as traditionally assumed.

Question 2

As a result of an increase in the money supply, some banks may end up with excess reserves. What is the likely result?
 
  A) Banks will raise interest rates.
  B) Banks will make more loans, thereby contributing to a decrease in aggregate demand.
  C) Banks will make more loans, thereby contributing to an increase in aggregate demand.
  D) Banks will spend the excess reserves by paying their employees more.


TheNamesImani

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Asthma. (a) A normal bronchiole. (b) An asthmatic bronchiole. During an asthma “attack,” the bronchi Asthma. (a) A normal bronchiole. (b) An asthmatic bronchiole. During an asthma “attack,” the bronchi
The introduction of a new generation of electric and hybrid cars will reduce the demand for oil The introduction of a new generation of electric and hybrid cars will reduce the demand for oil
The developed countries must reduce the level of greenhouse gas emissions The developed countries must reduce the level of greenhouse gas emissions
Recent research suggests that zinc lozenges and nasal gels may help reduce the severity Recent research suggests that zinc lozenges and nasal gels may help reduce the severity
The fiscal policy to counter an inflationary gap is a(n) The fiscal policy to counter an inflationary gap is a(n)
How does PCA reduce the dimension of a statistical problem? How do you select the reduced ... How does PCA reduce the dimension of a statistical problem? How do you select the reduced ...
Video: Chromosome structural organization/ Mechanisms for chromosome movement Animation

For a complete list of videos, visit our video library