How does the additional policy channel available in an open economy affect monetary policy? A. It has an indeterminate effect, sometimes increasing and sometimes decreasing the ability of an expansionary monetary policy to affect aggregate demand.
B. It does not have any effect on the ability of an expansionary monetary policy to affect aggregate demand.
C. It decreases the ability of an expansionary monetary policy to affect aggregate demand.
D. It increases the ability of an expansionary monetary policy to affect aggregate demand.

If the government is required to balance the budget and the economy falls into a recession, which of the actions is a feasible policy response? cut taxes to encourage consumer spending invest in infrastructure increase government spending to stimulate the economy cut spending equal to the reduction in tax revenue what is a likely consequence of this policy? unemployment falls due to the economic stimulus. the negative consequences of the recession are magnified. consumer spending increases due to their ability to keep more of their after-tax income. there is hyperinflation due to an increase in aggregate demand.

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Which of the following characteristics are emphasized in the accounting for state and local government entities? i. revenues should be matched with expenditures to measure success or failure of the government entity. ii. there is an emphasis on expendability of resources to accomplish objectives. a. i only b. ii only c. i and ii d. neither i nor ii