If policy makers wanted to use both monetary and fiscal policy to stimulate demand and reduce a high rate of unemployment, which of the following would be most appropriate?
a. A larger budget deficit and the purchase of securities in the open market by the Fed
b. A government surplus and the sale of securities in the open market by the Fed
c. A larger government deficit and an increase in the discount rate
d. A larger government surplus and a reduction in the discount rate
a
You might also like to view...
Refer to the scenario above. Which of the following is likely to be true if Joe is known to be trustworthy?
A) Multiple equilibria will occur. B) A Nash equilibrium will occur. C) A socially inefficient equilibrium will occur. D) A dominant strategy equilibrium will occur.
When indifference curve analysis is used, a consumer optimum occurs at the point at which
A. the indifference curve is tangent to the budget line. B. the indifference curves intersect. C. marginal utility/price ratio of all goods consumed is equal. D. total utility is maximum.