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Author Question: Which of the following macroeconomic variables is not in the equation of exchange? a. Real GDP. b. ... (Read 23 times)

moongchi

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on: Jun 30, 2018
Which of the following macroeconomic variables is not in the equation of exchange?
 a. Real GDP.
  b. Real exchange rate.
  c. Velocity of money.
  d. Money supply.
  e. All of the above are part of the equation of exchange.

Question 2

Fiscal policy:
 a. Is a powerful tool because budget deficits add directly to Aggregate Demand with no offsetting changes in consumption, investment, and/or net exports.
  b. May not be a powerful tool if most government expenditures are fixed and unchangeable in the short run.
  c. Is not a powerful tool because the government has very little control over a nation's monetary base and/or money multiplier.
  d. Is a powerful tool because of the decisive movements in the automatic stabilizers.


lkanara2

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Reply #1 on: Jun 30, 2018
Answer to Question 1

.B

Answer to Question 2

.B


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