Fiscal policy is most effective when
A) I is very sensitive to r.
B) LP is not very sensitive to r.
C) LP is very sensitive to r.
D) I is not very sensitive to r.
C
Economics
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In the figure above, the rightward shift from the demand for loanable funds curve DLF1 to the demand for loanable funds curve DLF2, could be the result of
A) a decrease in expected profit. B) a fall in the interest rate. C) an increase in wealth. D) a rise in the interest rate. E) an increase in expected profit.
Economics
According to John Taylor, during the period 2002-early 2006 the Fed set its federal funds rate target _____________ the rate that would have existed had the Fed set its target using the Taylor rule
A) below B) above C) equal to D) sometimes below and sometimes above
Economics