According to monetarists, an expansionary fiscal policy:
A. will be ineffective because the interest rate will rise and crowd out private investment
spending.
B. should not be permitted so long as a public debt exists.
C. should be used only when unemployment exceeds 6 percent of the labor force.
D. will be effective, provided the money supply is held constant.
A. will be ineffective because the interest rate will rise and crowd out private investment
spending
Economics
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Explain an additional disadvantage for a country undergoing dollarization compared to a currency board or other exchange-rate targeting regimes
What will be an ideal response?
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Refer to Figure 9.5. If the government establishes a price floor of $2.50, how many pounds of berries will be sold?
A) 200 B) 300 C) 400 D) 600 E) 800
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