Author Question: Because the Fed's current tool for changing the interest rate is to change the ________, once the ... (Read 60 times)

Tazate · **on:** Apr 19, 2019

Question 1

If the government spending multiplier were 4.2, a $1 billion increase in government spending would raise GDP by

◦ $2.1 billion after one year.
◦ $1 billion after two years.
◦ $3.2 billion after one year.
◦ $4.2 billion after one year.

Question 2

Because the Fed's current tool for changing the interest rate is to change the ________, once the decision has been made to make the change, ________.

◦ rate it pays on bank reserves; the implementation lag is usually very long
◦ rate it pays on bank reserves; there is in effect no implementation lag
◦ required reserve rate; the implementation lag is usually very long
◦ required reserve rate; there is in effect no implementation lag

steff9894 · **Reply #1 on:** Apr 19, 2019

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 32% of students answer this correctly