Economic Policy: Influential Theories Answers
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What are the goals when a government uses expansionary monetary policy? Check all that apply.
A
increasing its money supply to boost the economyB
decreasing its money supply to slow the economyC
increasing its money supply to speed business expansionD
decreasing its money supply to curb business expansionE
decreasing its interest rates to increase investment spending22
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The graph shows how individuals affect economic growth.
A
They work in their own self-interest.B
They work as part of a unified group.C
They work to influence the money supply.D
They work to influence the economy.23
A government might enact expansionary spending when it is trying to
A
increase aggregate demand for goods.B
decrease aggregate demand for goods.C
slow an economic expansion.D
lower a budget deficit.24
How did Adam Smith’s economic ideas help the United States establish a free enterprise system? Check all that apply.
A
They led to freedom of choice for consumers and producers.B
They led to fixed prices for consumers and producers.C
They led to open competition for consumers.D
They led to individual ownership of property.E
They led to more government spending and increased demand.F
They led to limited choice and communal ownership of property.25
Friedrich Hayek believed that
A
behaviors could be easily predicted.B
individuals could not influence the economy.C
the economy is simply explained through behaviors.D
the economy is too complicated to apply aggregates.26
Monetarism plays a role in economic growth by
A
expanding government intervention.B
influencing the supply of goods.C
expanding government spending.D
influencing the supply of money.27
The General Theory of Employment, Interest and Money was written by
A
John Maynard Keynes.B
Adam Smith.C
Milton Friedman.D
Friedrich August von Hayek.28
Milton Friedman argued that consumers are more likely to alter their behavior based on
A
changes in the unemployment rate.B
short-term changes in the economy.C
long-term changes in the economy.D
changes in the inflation rate.Did you find these answers helpful?
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