According to the modern view, the impact of expansionary monetary policy will
a. be the same in the long run as in the short run.
b. be the same regardless of whether the effects of the policy are anticipated or unanticipated.
c. initially be an increase in real output if the policy is unanticipated, but in the long run, the primary result will be a higher price level (inflation).
d. initially be an increase in prices if the policy is unanticipated, but in the long run, the primary result will be larger real output.
C
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If China's government runs a budget surplus and there is no Ricardo-Barro effect, there will be ________ in the supply of loanable funds, private saving ________ and investment ________
A) an increase; decreases; increases B) a decrease; increases; increases C) an increase; increases; increases D) a decrease; decrease; increases
When Airbnb customers in Malibu start paying hotel taxes, this will have the potential to raise the equilibrium price in this market and, therefore, decrease efficiency. This would have a tendency to
A) decrease producer surplus and decrease deadweight loss. B) decrease consumer surplus and increase deadweight loss. C) maximize consumer surplus and minimize producer surplus. D) increase consumer surplus and increase producer surplus.