Question
Directions: Expansionary stabilization policies are designed to increase Aggregate Demand, while contractionary policies reduce AD. Each of the next four questions contains a statement of
Directions: Expansionary stabilization policies are designed to increase Aggregate Demand, while contractionary policies reduce AD. Each of the next four questions contains a statement of a specific macroeconomic stabilization policy. In the following 4 questions, complete each statement by filling in the blank with the most appropriate stabilization policy.
a. Which of the following was not part of the "New Deal" programs designed to address the Great Depression in the USA in the 1930s?
O increased regulation on banks and securities markets
O increased government spending on infrastructure
O increased tariffs on imported goods and services
O increased transfer payment programs such as unemployment compensation and Social Security
b. The FED buying securities in the open market is
O contractionary monetary policy
O contractionary fiscal policy
O expansionary monetary policy
O expansionary fiscal policy
c. Reducing taxes on higher education expenses of individuals is
O contractionary fiscal policy
O expansionary fiscal policy
O expansionary monetary policy
O contractionary monetary policy
d. Decreasing the discount rate is
O expansionary fiscal policy
O contractionary monetary policy
O contractionary fiscal policy
O expansionary monetary policy
Thx!
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Essentials Of Economics
Authors: N. Gregory Mankiw
5th Edition
0324590024, 9780324590029
