When the transmission mechanism breaks down macroeconomists call this the
A) liquidity trap.
B) crowding out.
C) crowding in.
D) debt ceiling.
Correct Answer:
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Q61: An increase in the discount rate would
Q62: A reduction of the reserve ratio would
Q63: An increase in the monetary base (the
Q64: Contractionary monetary policy would shift the
A)aggregate demand
Q65: An decrease in the discount rate would
Q67: A sale of government debt as part
Q68: If the Federal Reserve wished to engage
Q69: Between 2001 and 2003 the Federal Reserve
Q70: A purchase of government debt as part
Q71: Expansionary monetary policy would shift the
A)aggregate demand
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