In 2008, during the Great Recession, the federal government provided tax rebate checks to taxpayers in the hope that
A. consumption would decrease.
B. government purchases would decrease.
C. consumption would increase.
D. government purchases would increase.
Answer: C
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In perfect competition, the marginal revenue of an individual firm
A) is zero. B) is positive but less than the price of the product. C) equals the price of the product. D) exceeds the price of the product.
Of these policies, which is the best example of constrained discretion?
A) the annual federal budget deficit shall not exceed three percent of the GDP B) the growth rate of the money supply shall be between two percent and five percent C) macroeconomic policies shall promote rapid economic growth and low inflation D) macroeconomic policies shall aim to keep inflation — on average over each five-year interval — within a range of two percent to four percent
Credibility is not important in ________
A) new Keynesian and traditional Keynesian theory B) real business cycle and traditional Keynesian theory C) real business cycle and new Keynesian theory D) traditional Keynesian, new Keynesian and real business cycle theory
Dividing the number seventy-two by an interest rate yields
A. the number of years it would take an investment to double in value. B. the annual payment required to pay off a loan at that interest rate. C. a good measure of the level of risk in the investment proposal. D. all of these options are correct.