The effects of a decline in the value of financial assets, such as stocks, on consumption and the economy might be offset by

a. increasing government spending.
b. decreasing the money supply.
c. increasing taxes.
d. undertaking no policy action.

a

Economics

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The TSLS estimator is

A) (X'X)-1 X'Y B) (X'Z(Z'Z)-1 Z'X)-1 X'Z(Z'Z)-1 Z' Y C) (X?-1X)-1(X?-1Y) D) (X'Pz)-1PzY

Economics

Suppose that the quantity of apples sold increases by 30 percent after the price of pears increases by 15 percent. What is the coefficient of cross elasticity of demand?

a. 3.0 b. 1.5 c. 0.2 d. 2.0 e. 0.3

Economics