The goal of expansionary monetary policy is to:
A. reduce interest rates to slow down the economy.
B. increase interest rates to slow down the economy.
C. increase interest rates to stimulate the economy.
D. reduce interest rates to stimulate the economy.
Answer: D
You might also like to view...
According to real business cycle models,
A) the economy is normally at potential GDP. B) unexpected changes in monetary policy are the major source of fluctuations in real GDP. C) the long-run Phillips curve is negatively sloped. D) the economy is normally operating below the natural rate of unemployment.
A firm that operates in Stage III of the short-run production function
A) has too much fixed capacity relative to its variable inputs. B) has too little fixed capacity relative to its variable inputs. C) has greatly overestimated the demand for its output. D) should try to increase the amount of variable input used.