If a passive approach is followed in closing an expansionary gap, _____
a. restrictive fiscal policy would be used
b. restrictive monetary policy would be used
c. the short-run aggregate supply curve would shift to the right
d. the price level would decrease in the long run
e. an economy would experience inflationary pressure
e
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"When the Fed makes an open market purchase of government securities, the quantity of money will eventually decrease by a fraction of the initial change in the monetary base." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
The common habit of viewing middlemen as unproductive bandits on the highway of free trade assumes
A) transaction costs are zero. B) information is a free good. C) voluntary exchange is not mutually beneficial. D) all of the above. E) none of the above.