Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ?

Related Mcqs:

When an increase in government purchases increases the income of some people, and those people spend some of that increase in income on additional consumer goods, we have seen a demonstration of ?

A. The multiplier effects B. supply side economics C. None of these answers D. The crowding out effect...

When money demand is expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the interest rate ?

A. None of these answers B. decrease the quantity demanded of money C. increase the quantity demanded of money D. decreases the demand for money E. increases the demand for money...

The initial effect of an increase in the money supply is to ?

A. increase the interest rate B. increase the price level C. decrease the price level D. decrease the interest rate...

An increase in the marginal propensity to consumer (MPC) ?

A. raises the value of the multiplier B. has no impact on the value of the multiplier? C. rarely occurs because the MPC is set by congressional legislation D. lowers the value of the multiplier...

When an increase in government purchases raises incomes shifts money demand to the right raises the interest rate, and lowers investment we have seen a demonstration of ?

A. supply-side economics B. None of these answers C. The crowding-out effect D. The multiplier effects...