Quiz 18 - Monetary Policy 2

a chrome Edit View History Bookmarks Profiles Tab Window Help Q @J L >3 {C} '3' Q 8 Tue Mar 28 1:14 PM r 1 . ~ , Q '32! Quiz: Quiz 18 - Monetary Poli C a tarleton.instructure.com/courses/43457/quizzes/222217/take Question 3 1 pts Which of the following would prefer that the Federal Reserve held to a constant rule and avoided discretionary changes in the money supply? O Classicalists O Monetarists O Hayekians O All except Keynesians O Keynesians .. .... Question 1 4 1 X zoom SafeNet CO OChrome File Edit View History Bookmarks Profiles Tab Window Help L 8 Q Tue Mar 28 1:14 PM Quiz: Quiz 18 - Monetary Policy x + - > C a tarleton.instructure.com/courses/43457/quizzes/222217/take Question 2 1 pts In 2012-13, the Republican Congress and Democratic President Obama were unable to come to an agreement on a budget for the next year. This was called "going over the fiscal cliff" and triggered "sequestration" - a very tight budget neither party favored. Government spending was reduced by $500 billion. What did monetarist economists predict this would do to the US economy? O Lower spending will lower budget deficits, which will encourage private sector investment and long run economic growth Send the economy into stagflation - lower GDP and higher inflation O While this will lower inflation, it is not expected to have any impact on real GDP because the AS curve is vertical in the long run. O Send the economy back into recession - lower GDP, lower inflation O It depends on what the Federal Reserve does in response. If they offset the decrease in AD, there might be no change at all. 4 1 w 9 X A SafeNet O zoomChrome File Edit View History Bookmarks Profiles Tab Window Help S Q Wed Mar 29 8:57 AM Quiz 18 - Monetary Policy 2: SF X M Question 1 - Ch07 Exercises & X ( Course Hero X + F - C tarleton.instructure.com/courses/43457/quizzes/222217 Spring 2023 Incorrect Question 2 0 / 1 pts Home Syllabus In 2012-13, the Republican Congress and Democratic President Obama were Account Modules unable to come to an agreement on a budget for the next year. This was called "going over the fiscal cliff" and triggered "sequestration" - a very tight budget Zoom neither party favored. Government spending was reduced by $500 billion. What Dashboard Quizzes did monetarist economists predict this would do to the US economy? Courses Discussions O Assignments Lower spending will lower budget deficits, which will encourage private sector investment and long run economic growth Groups Grades 22 88: Announcements Send the economy into stagflation - lower GDP and higher inflation Calendar Course Evaluations O Inbox Panopto Video While this will lower inflation, it is not expected to have any impact on real GDP because the AS curve is vertical in the long run. Microsoft Teams classes History Send the economy back into recession - lower GDP, lower inflation Studio O It depends on what the Federal Reserve does in response. If they offset the decrease ? in AD, there might be no change at all. Help K X A zoom SafeNet OChrome File Edit View History Bookmarks Profiles Tab Window Help S C $ 7 Q Wed Mar 29 8:57 AM Quiz 18 - Monetary Policy 2: SF X M Question 1 - Ch07 Exercises & X Course Hero X + F - C tarleton.instructure.com/courses/43457/quizzes/222217 in AD, there might be no change at all. Spring 2023 Home Syllabus Account Modules Incorrect Question 3 0 / 1 pts Zoom Dashboard Quizzes Which of the following would prefer that the Federal Reserve held to a constant rule and avoided discretionary changes in the money supply? Courses Discussions Assignments Classicalists Groups Grades 22 O Monetarists 88: Announcements Calendar Course Evaluations O Hayekians Inbox Panopto Video All except Keynesians Microsoft Teams classes Keynesians History Studio ? Question 4 1 / 1 pts ..... Help Which of the following statements are consistent with monetarism? K A 1 w X O zoom SafeNetChrome File Edit View History Bookmarks Profiles Tab Window Help S C B Q Wed Mar 29 8:57 AM Quiz 18 - Monetary Policy 2: SF X M Question 1 - Ch07 Exercises & X . Course Hero X + tarleton.instructure.com/courses/43457/quizzes/222217 Spring 2023 Home Partial 0.5 / 1 pts Syllabus Question 5 Account Modules With which of the following statements would a HAYEKIAN economist agree? Zoom Dashboard Quizzes O Without expansionary monetary policy, wages will not adjust and recessions can last a Courses Discussions long time Assignments Monetary policy changes AD primarily by changing interest rates Groups Grades 22 88: Announcements Tight monetary policy can cause recessions Calendar Course Evaluations Loose monetary policy causes recessions: low interest rates create malinvestments and Inbox Panopto Video imbalances that have to unwind Microsoft Teams classes History Since velocity does not change and the economy is nearly always at full employment, MV=PY tells us that monetary policy directly affects the price level only. Studio ? Clear monetary policy rules reduce business cycle fluctuations better than giving the Help Federal Reserve discretion K A 9 X O zoom SafeNet