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Which of the following events would most likely cause stagflation? expansionary

ID: 1201069 • Letter: W

Question

Which of the following events would most likely cause stagflation? expansionary fiscal policy unusually favorable weather for agriculture. an increase in production technology contractionary monetary policy. an increase in the international price of steel. If Congress increases net taxes and the Fed decreases the required reserve ratio at the same time: planned investment will fall for sure. the interest rate will fall for sure. aggregate output will rise for sure. aggregate output will fall for sure. the effect on the interest rate is ambiguous. Which of the following policies would be most likely to spur greater private planned investment spending? an expansionary fiscal and contractionary monetary policy an expansionary fiscal and expansionary monetary policy a contractionary' fiscal and contractionary monetary policy a contractionary' fiscal and expansionary monetary policy both b & d would work equally well An increase in the required reserve ratio generates a(n) in the causes a(n) in the interest rate. In response, firms will ontput. Decrease, increase, decrease Increase, increase, increase Decrease, decrease, decrease Decrease, increase, increase Increase, decrease, decrease If the Fed increased money supply, there will he a surplus of money and the equilibrium interest rate will rise a surplus of money and the equilibrium interest rate will fall a shortage of money and the equilibrium interest rate will rise a shortage of money and the equilibrium interest rate will fall

Explanation / Answer

23) Increase in the international prices of steel

25) E

26)A

27)B

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