The influence of monetary and fiscal policy on aggregate demand
True
False
True
False
True
False
True
False
True
False
True
False
True
False
True
False
True
False
True
False
True
False
True
False
True
False
True
False
True
False
They supply and demand for loanable funds
The supply and demand for money
The supply and demand for labor
Aggregate supply and aggregate demand
Increases the quantity demanded of money
Increases the demand for money
Decreases the quantity demanded of money
Decreases the demand for money
Does none of the above
Shifts money demand to the right and increases the interest rate
Shifts money demand to the left and increases the interest rate
Shifts money demand to the right and decreases the interest rate
Shifts money demand to the left and decreases the interest rate
Does none of the above
The exchange-rate effect
The wealth effect
The fiscal effect
The interest-rate effect
None of the above
Shift aggregate demand to the right
Shift aggregate demand to the left
Shift aggregate supply to the right
Shift aggregate supply to the left
Increase the price level
Decrease the price level
Increase the interest rate
Decrease the interest rate
Increase the price level
Decrease the price level
Increase the interest rate
Decrease the interest rate
Increase government spending and decrease taxes
Decrease government spending and increase taxes
Increase the money supply and decrease interest rates
Decrease the money supply and increase interest rates
Aggregate supply to the right
Aggregate supply to the left
Aggregate demand to the right
Aggregate demand to the left
.75
4
7.5
None of the above
Raises the value of the multiplier
Lowers the value of the multiplier
Has no impact on the value of the multiplier
Rarely occurs because the MPC is set by congressional legislation
Decrease taxes, which shifts aggregate demand to the right
Decrease taxes, which shifts aggregate demand to the left
Decrease government spending, which shifts aggregate demand to the right
Decrease government spending, which shifts aggregate demand to the left
The multiplier effect
The investment accelerator
The crowding-out effect
Supply-side economics
None of the above
Most economists believe that, in the short run, the greatest impact of a change in taxes is on aggregate supply, not aggregate demand
A permanent change in taxes has a greater effect on aggregate demand than a temporary change in taxes
An increase in taxes shifts the aggregate-demand curve to the right
A decrease in taxes shifts the aggregate-supply curve to the left
The aggregate-supply curve shifts to the right by more than $16 billion
The aggregate-supply curve shifts to the left by more than $16 billion
The aggregate-demand curve shifts to the right by more than $16 billion
The aggregate-demand curve shifts to the left by more than $16 billion
The multiplier effect
The investment accelerator
The crowding-out effect
Supply-side economics
None of the above
The multiplier effect
The investment accelerator
The crowding-out effect
Supply-side economics
None of the above
Military spending
Spending on public schools
Unemployment benefits
Spending on the space shuttle
All of the above are automatic stabilizers
In the short run, a decision by the Fed to increase the targeted money supply is essentially the same as a decision to increase the targeted interest rate
Congress has veto power over the monetary policy decisions by the Fed
Long lags enhance the ability of policymakers to "fine-tune" the economy
Many economists prefer automatic stabilizers because they affect the economy with a shorter lab than activist stabilization policy
All of the above are true
The money supply shifts right, the interest rate rises, investment decreases, and aggregate demand shifts left
The money supply shifts right, the interest rate falls, investment increases, and aggregate demand shifts right
The money supply shifts right, prices rise, spending falls, and aggregate demand shifts left
The money supply shifts right, prices fall, spending increases, and aggregate demand shifts right
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