According to Baumol and Blinder, the lag between the time a policy is implemented and the time it affects aggregate demand is
A. longer for fiscal policy than monetary policy.
B. longer for monetary policy than fiscal policy.
C. approximately equal for both.
D. influenced mainly by the size of the multiplier.
Answer: B
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Suppose the Fed pursues a policy that leads to higher interest rates in the United States. How will this policy affect real GDP in the short run if the United States is an open economy? This policy
A) increases investment spending, consumption spending, and net exports, all of which increase GDP. B) reduces investment spending, consumption spending and net exports, all of which reduce GDP. C) reduces investment spending and consumption spending, both of which reduce GDP. Net exports rise which increases GDP. D) reduces investment spending and consumption spending, both of which reduce GDP. Net exports fall which increases GDP.
In 1863, the total number of slaves in America was about:
a. 50 thousand. b. 1 million. c. greater than $4 million. d. 1 billion. e.