Exam 36: Six Debates Over Macroeconomic Policy

Economists

In fiscal year 2008, the U.S. government ran a deficit of about $459 billion. In fiscal year 2009, the government ran a deficit of about $1,413 billion. Other things the same, this change would be expected to have

Which kind of lag is important for monetary policy? Which kind of lag is important for fiscal policy?

If firms were faced with greater uncertainty because of concern that oil prices might rise, they might decrease expenditures on capital. In response to this change, someone who advocated "lean against the wind" policies might advocate

An economist would be more likely to argue against reducing inflation if she thought that

Which of the following likely occurs when households and firms become more pessimistic?

The Federal Open Market Committee

The effect of budget deficits on interest rates

Proponents of zero inflation argue that reducing inflation has

An individual would suffer higher losses from an unexpectedly higher inflation rate if

An increase in the tax rate on interest income

An economist advising a central bank intending to reduce the inflation rate would likely point out that

Which of the following is not correct?

If aggregate demand shifts right and the President and Congress want to use fiscal policy to reverse the change in output, they could

Which of the following is not correct?

Means-tested college aid, base college aid primarily on

What did the actions of the Federal Reserve during the 1990's demonstrate about monetary policy and rules?

Which of the following would transfer wealth from old to young?

A 1977 amendment to the Federal Reserve Act of 1913

The Federal Open Market Committee