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Other Fields Homework Help Economics Topic started by: mdagenh1 on Apr 28, 2019



Title: Because the Fed's current tool for changing the interest rate is to change the ________, once the ...
Post by: mdagenh1 on Apr 28, 2019

Question 1.

If the government spending multiplier were 4.2, a $1 billion increase in government spending would raise GDP by



▸ $2.1 billion after one year.

▸ $1 billion after two years.

▸ $3.2 billion after one year.

▸ $4.2 billion after one year.

Question 2.

Because the Fed's current tool for changing the interest rate is to change the ________, once the decision has been made to make the change, ________.



▸ rate it pays on bank reserves; the implementation lag is usually very long

▸ rate it pays on bank reserves; there is in effect no implementation lag

▸ required reserve rate; the implementation lag is usually very long

▸ required reserve rate; there is in effect no implementation lag


Title: Because the Fed's current tool for changing the interest rate is to change the ________, once the ...
Post by: aishasu on Apr 28, 2019
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