The supply curve for loanable funds would increase due to a(n)
A) increase in wealth.
B) increase in expected inflation.
C) decrease in the liquidity of bonds relative to other assets.
D) increase in the information costs of bonds relative to other assets.
Question 2
What do the legislative and implementation lags have in common?
A) They are both more important for monetary than fiscal policy.
B) They are both more important for fiscal than monetary policy.
C) They are both harder to measure but less variable than the effectiveness lag.
D) They both take place before the data and recognition lags.
E) none of the above
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