Which of the following is an example of a fiscal policy?
A) The federal government increases income tax rates on people earning more than $250,000.
B) The Federal Reserve takes action to greatly decrease the money supply.
C) The Federal Reserve increases interest rates.
D) Businesses begin to export and import more products and services.
A
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The relationship between two variables, x and y, is a vertical line. Thus x and y are
A) positively correlated. B) negatively correlated. C) not related. D) falsely related.
If the government increased defense spending by $1 million and laid off enough Justice Department employees to decrease the Department of Justice budget by $1 million, which of the following is the likely net effect?
a. An increase in the budget deficit and transfer payments b. An increase in the budget deficit and net taxes c. An increase in the budget deficit and government spending d. No change in the budget deficit because there is no net change in government spending e. No change in the budget deficit because neither defense spending nor the Department of Justice is included in government spending
Economic theory is necessary and extremely important because of its relationship to economic policy
a. True b. False Indicate whether the statement is true or false
If income in Africa increases by 4% and demand for poultry increases by 8%, then the income elasticity for poultry demand in Africa is projected to be:
a. -0.8 b. 0.8 c. 2 d. 1.25 e. 1.50