Trace the cause-effect chain that results from an expansionary monetary policy.
What will be an ideal response?
An expansionary monetary policy will cause bank reserves to grow and the money supply to expand. Interest rates will fall and this encourages investment spending. Real GDP will rise by a multiple of the increase in investment.
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Assume there are three players in a game, Tom, Dick, and Harry, and all three want to meet up at either at the Library or the Student Union, no player knows with certainty where the other two will go, and they will consider their mission a failure if
all three do not meet at the same location. Use a series of "if-then" statements to describe Tom's ideal strategies based on the possible choices of Dick and Harry. Explain if Tom has a dominant strategy?
What are some of the drawbacks, as you see them, to a program like Workfare?
What will be an ideal response?