Which of the following is appropriate monetary pokey given a recession from a ne

Question

Which of the following is appropriate monetary pokey given a recession from a negative AD shock? Select one Increases the discount rate Buy government securities through open market operations increase the amount of required reserve ratio Increase interest paid on reserves held at the Fed Which of the following is true regarding fiscal pokey and time lags? Select one Fiscal policy does not have time lags Fiscal policy's longest lag is the recognition lag Fiscal policy can have a long legislative lag whereas monetary pokey has no legislative lag Fiscal pokey has a shorter legislative than monetary pokey The monetary base (MB) refers to Select one currency, savings deposits, money market mutual funds, and small time deposits currency plus total reserves held at the Fed currency plus checkable deposits currency

Explanation / Answer

Fiscal policy time lag : Longest lag is the recognition lag. when macroeconomics data is available it taken time to analysis and recognise it. What does the data speaks, example, is the falling trends temporary, or will be longer or is it due to unemployment. So it takes quite a good time to understand and recognize real causes.

Monetary bases (MB) refers to currency plus total reseres held at fed

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