In most nations, one or more governing bodies must approve government spending or new tax policies. This process causes a(n) ________ lag between setting fiscal policy and seeing its effects.

If the marginal propensity to consume is equal to 0.4, the spending multiplier is equal to ________.

Contractionary monetary policy occurs when ________ in an effort to control an economy that is expanding too quickly.

Theoretically, how will an increase in the required reserve ratio affect the size of the money supply?

Countercyclical fiscal policy

If the interest rate on a loan is higher than the expected return from an investment,

Which of the following aggregate demand–aggregate supply models illustrates the short-run effects of expansionary monetary policy?

If people decide to save a smaller percentage of their incomes, then the value of the spending multiplier will ________ and changes in government spending will have ________ impact on gross domestic product.

If the government were to print more money, which of the following would likely occur?

If the interest rate on a loan is higher than the expected return from an investment,