In the New Keynesian model, the stabilization effects of fiscal and monetary policy are different because
A) the effects on the composition of output are different.
B) monetary policy does not work in a liquidity trap, but fiscal policy does.
C) monetary policy affects spending on goods indirectly; fiscal policy affects spending directly.
D) all of the above.
D
Economics
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Why are the public sector and private sectors “imperfect institutions”?
Please provide the best answer for the statement.
Economics
If the price of "X" increases and you buy less "Y," then
A. "X" and "Y" are complements, and the price of "Y" will increase. B. "X" and "Y" are substitutes, and the price of "Y" will increase. C. "X" and "Y" are complements, and the price of "Y" will decrease. D. "X" and "Y" are substitutes, and the price of "Y" will decrease.
Economics