Suppose a wave of investor and consumer pessimism in the USA causes a reduction in spending If the US federal Reserve (Which has a broader remit than the Bank of England Which is charged only with controlling inflation) chooses to engage in activist stabilization policy it should ?

Related Mcqs:

In the market for real output, the initial effect of an increase in the money supply is to ?

A. shift the aggregate supply curve to the right B. shift the aggregate supply curve to the left C. shift the aggregate demand curve to the left D. shift the aggregate demand curve to the right...

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...