If expectations are rational, how can government influence unemployment in a predictable way?
a. with the normal tools, used in the normal fashion
b. with fiscal policy; monetary policy will not work
c. with monetary policy; fiscal policy will not work
d. with surprise changes in policy only
d
Economics
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A decrease in the reserve requirement would:
A) decrease excess reserves and reflect an expansionary monetary policy. B) decrease excess reserves and reflect a contractionary monetary policy. C) increase excess reserves and reflect an expansionary monetary policy. D) increase excess reserves and reflect a contractionary monetary policy.
Economics
In Figure 3-7 above, a $250 increase in AP causes
A) Y to increase by $1250. B) induced saving to increase by $250. C) consumption to increase by $1000. D) all of the above.
Economics