1) Why do some economists argue AGAINST the use of discretionary fiscal and mone

Question

1) Why do some economists argue AGAINST the use of discretionary fiscal and monetary policies during a recession?
A. Some economist believe failing businesses should be bailed out for the good of the macroeconomy
B. Some economist believe the use of discretionary fiscal and monetary policy is useful in stabilizing the macro economy
C. Some economist believe the market will self-correct without intervention from the government
D. All the above
E. None of the above

2)
If the fed’s objective is to stimulate the economy, which of the following gives the correct sequence of the events?
A. The money supply increase, interest rates decrease, investments increase, aggregate demand increase
B. The money supply increase, interest rates increase, investments increase, aggregate demand supply decrease
C. The money supply decrease, interest rates increase, investments decrease, aggregate demand decrease
D. The money supply decrease, interest rates increase, investments increase, aggregate demand increase

3) If on Tuesday you can buy 125 yen per U.S dollar and on Wednesday you can buy 120 yen per U.S dollar,
A. Both the U.S dollar and yen have appreciated
B. Both the U.S dollar and the yen have depreciated
C. The U.S dollar has appreciated and the yen has depreciated
D. The U.S dollar has depreciated and the yen has appreciated
E. The yen has appreciated and the U.S dollar has remained constant

Explanation / Answer

1.A 2.B 3.E

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.