The policy mix of a contractionary fiscal policy and a contractionary monetary policy would cause output to ________, and interest rates to ________.

A) decrease; increase, decrease, or remain unchanged
B) decrease; decrease
C) decrease; increase
D) increase, decrease, or remain unchanged; decrease

Answer: A) decrease; increase, decrease, or remain unchanged

Economics

You might also like to view...

Becky holds $30,000 as money. After a year during which inflation was 5 percent a year, the inflation tax over that year was

A) $1,000. B) $1,500. C) $500. D) $5. E) $3,000.

View
Economics

Refer to Table 18.1. M1 in this simple economy equals

A) $500. B) $550. C) $1,050. D) $4,550.

View
Economics