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Author Question: Assume that the government tries to reduce unemployment by increasing government spending. Which of ... (Read 108 times)

HCHenry

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on: Jun 30, 2018
Assume that the government tries to reduce unemployment by increasing government spending. Which of the following unwelcome effects is not a side effect of this measure?
 a. Lower overall (private plus government) borrowing in the real credit market
  b. Rising budget deficits.
  c. Increased real risk-free interest rate
  d. Higher inflation rates.
  e. Crowding out.

Question 2

M2 includes:
 a. Any financial assets that can be spent on real goods and services.
  b. Checking accounts plus Deposits at the central bank.
  c. Currency in circulation + Reserves of financial intermediaries (e.g., banks) + Checking Accounts + Near Money.
  d. Currency in circulation + Checking Accounts
  e. Currency in circulation + Checking Accounts + Near Money.


amcvicar

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

.A

Answer to Question 2

.E


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HCHenry

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Reply #2 on: Jun 30, 2018
Thank you :)


amcvicar

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Reply #3 on: Jun 30, 2018
Happy to help you


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