Refer to the table above. The current account balance is equal to

Which of the following is an example of an unintended consequence?

a. first time tax credits that cause more home sales b. a price ceiling on gasoline that causes a gas shortage and leads some gas stations to go out of business. c. increased parking fines that lead to fewer violators d. all of the above

Expansionary monetary policy will

a. often raise real interest rates in the short run. b. generally reduce aggregate demand in the short run. c. lead to higher nominal interest rates if the expansionary policy persists over a lengthy time period. d. lead to a rapid growth of real GDP if the expansionary policy persists over a lengthy time period.