If the economy is near full employment and Congress cuts taxes, the proper monetary policy should be
a. expansionary to keep the economy fully employed.
b. expansionary to counteract the increased deficit.
c. contractionary to shift the aggregate demand curve outward.
d. contractionary to counteract the effects of fiscal policy.
d
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Two countries have equal population. These countries will have equal income per capita in a particular year if ________
A) the countries have equal inflation rate in that year B) the GDP of both the countries are equal in that year C) equal amounts of capital are available in both the countries in that year D) the size of the working age population in both the countries are equal in that year
Advances in financial technology
A) must increase the demand for money. B) might increase or decrease the demand for money. C) must decrease the demand for money. D) affect only the supply of money. E) have no effect on the demand for money or on the supply of money.