If Y is income, E is actual expenditure, Ep is planned expenditure, and Iu is unintended inventory investment, then
A) Y = E + Iu.
B) Iu = Y - E.
C) Y = Ep + Iu.
D) none of the above.
C
Economics
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Refer to Figure 15-7. Suppose the economy is in a recession and the Fed pursues an expansionary monetary policy. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) A to E. B) A to B. C) B to C. D) C to B. E) C to D.
Economics
Fully accommodating monetary policy results in
A) a constant interest rate. B) the simple fiscal-policy multiplier of Chapter 3. C) an increase in the money supply when there is a rise in government spending. D) All of these.
Economics