Which combination of fiscal policy actions would most likely be offsetting?
A. Increase in taxes and government spending
B. Increase in taxes but no change in government spending
C. Decrease in taxes and increase in government spending
D. Decrease in taxes but no change in government spending
Answer: A
You might also like to view...
A shift in the demand curve will occur when
A. suppliers place more goods on the market. B. the price of a good rises. C. consumers want to buy more or less than before at a given price. D. the price of the good falls.
The price elasticity of demand for a variable input will be more elastic in all the following cases EXCEPT
A) the greater the price elasticity of demand for the final product. B) the easier it is for a particular variable input to be substituted for by other inputs. C) the larger the proportion of total costs accounted for by a particular variable input. D) the shorter the time period being considered.
By requiring that policyholders pay a deductible on a claim, insurers guard against
a. symmetrical information b. adverse selection c. natural selection d. moral hazard e. the winner's curse
One way the government can enhance efficiency through the management of common resources is by:
A. banning the good. B. setting quotas for the good. C. government provision of the good. D. All of these can be effective and efficiency-enhancing solutions.