Since the mid-1980s, the primary indicator of monetary policy has been
a. movement of short-term interest rates.
b. the growth rate of real government expenditures.
c. the growth of the M1 money supply.
d. changes in the nominal (dollar) size of budget deficits or surpluses.
A
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In order to impact aggregate demand and the economy, the Fed needs to be able to influence:
A. every measure of the money supply. B. MB only. C. MB and M1 D. M1 and M2.
Initially, the economy is at point G in Figure 10-4 above. An increase in per capita savings from s(0 ) to s(1 ) will in the short run result in ________ and in the long run result in ________
A) excess per capita saving; more rapid growth in per capita output B) excess per capita saving; less rapid growth in per capita output C) more rapid growth in per capita output; more rapid growth in per capita output D) more rapid growth in per capita output; no change in the long run rate of growth in per capita output