From a Monetarist Perspective, an Expansionary fiScal Policy's Effect on Aggregate

question 91

Multiple Choice

From a monetarist perspective, an expansionary fiscal policy's effect on aggregate demand would be offset by

• A) the buying of government securities by the Treasury.
• B) the selling of government securities by the Treasury.
• C) a cut in the Federal funds rate.
• D) a cut in the discount rate.

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Definitions:

Validity Effect

A phenomenon where a statement is more likely to be perceived as true the more it is repeated, regardless of its actual veracity.

Repeated Statements

The act of saying or presenting the same information multiple times to reinforce a message or ensure understanding.

Altruism

The belief in or practice of disinterested and selfless concern for the well-being of others.

Selfless Action

An act performed with no expectation of reward or recognition, often motivated by a desire to help or benefit others.