The impact effect is the
A) zero period dynamic multiplier.
B) h period dynamic multiplier, h>0.
C) cumulative dynamic multiplier.
D) long-run cumulative dynamic multiplier.
Answer: A
You might also like to view...
Which of the following describes a situation in which the person is hurt by inflation?
A) a person who lends money during a period when inflation is over-predicted B) a person who borrows money during a period when inflation is under-predicted C) a person paid a fixed income during an inflationary period D) a retiree whose pension is adjusted for inflation
All else equal and given the current system of exchange rates, if the United States enters a period of exceptionally strong growth,
A) the pressure on the dollar is to revalue. B) the pressure on the dollar is to devalue. C) the pressure on the dollar is to depreciate. D) the pressure on the dollar is to appreciate. E) Both A and D.