« previous next »

Author Question: Suppose the economy is on the classical range of the aggregate supply curve and has a problem with ... (Read 281 times)

j.rubin

  • Hero Member
  • *****
  • Posts: 557
on: Jun 30, 2018
Suppose the economy is on the classical range of the aggregate supply curve and has a problem with inflation. According to Keynesian theory, which of the following is an appropriate discretionary fiscal policy to use in this situation?
 a. A reduction in the money supply.
  b. Less government regulation.
  c. Increase federal spending.
  d. Higher taxes.

Question 2

A decrease in the money supply:
 a. raises the interest rate, causing an increase in investment and an increase in GDP.
  b. lowers the interest rate, causing an increase in investment and an increase in GDP.
  c. raises the interest rate, causing a decrease in investment and a decrease in GDP.
  d. lowers the interest rate, causing a decrease in investment and an increase in GDP.
  e. lowers the interest rate, causing a decrease in investment and a decrease in GDP.


at

  • Sr. Member
  • ****
  • Posts: 359
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

c


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Moving the hip through its full range of motion. Moving the hip through its full range of motion.
A dose-response curve describes the relationship between the quantity of the chemical entering the ... A dose-response curve describes the relationship between the quantity of the chemical entering the ...
Linear dose-response curve Linear dose-response curve
Testing the arterial supply to the lower extremities Testing the arterial supply to the lower extremities
Viral Math Problem Solved | Only for Geniuses Viral Math Problem Solved | Only for Geniuses
Hyperbola Math Problem (pt2) Hyperbola Math Problem (pt2)
Video: Sister chromatids of a metaphase chromosome animation

For a complete list of videos, visit our video library