Suppose that the economy is currently at full employment. All other things being equal, if the government implements restrictive policies then the appropriate monetary policy is
A. no change from the current policy.
B. reduce the growth of the money supply.
C. constant growth of the money supply.
D. increase the growth of the money supply.
Answer: D
Economics
You might also like to view...
Investment spending includes spending on
A) changes in business inventories. B) stocks. C) food. D) transfer payments.
Economics
A capital inflow occurs when a
A) domestic resident purchases a domestic asset. B) domestic resident purchases a foreign asset. C) foreign resident purchases a domestic asset. D) foreign resident purchases a foreign asset.
Economics