The idea that the money supply should change to accommodate changes in aggregate demand is associated with the idea of ?

Related Mcqs:

Time lags which often erode effectiveness of monetary and fiscal policy measures represent ?

A. delays in the response of the economy is stabilization policy B. the foreign response to price changes C. the change in exports and imports prices D. the change in exchange rates...

The response lag of stabilization policy represents ?

A. the time that it takes for policy makers to recognize the existence of boom of bust B. the time needed for parliament to agree to a tax cut. C. the time that is necessary to put the desired policy into effect D. the time that it takes for the economy to adjust to the … The response lag of stabilization policy represents ?Read More...

The multiple by which total deposits can increase for every pound increase in reserves is the ?

A. Money multiplier B. liquidity ratio C. bank’s line of credit D. required reserve ratio...

The parable of Riding a Switchback suggest that stabilizing policy ?

A. is not sufficiently stimulating or contracting the economy at any time B. is effective C. is stimulating or contracting the economy at the wrong times D. is desirable...

As the required reserve ratio is decreased the money multiplier ?

A. could either increase or decrease B. decrease C. increase D. remain the same, as long as bank hold no excess reserves...