Why might economic policies aimed at stabilization actually increase the magnitudes of economic fluctuations?
What will be an ideal response?
Well-timed economic policies can reduce the magnitudes of economic fluctuations. But if the policies are poorly timed, they might work in the opposite direction of the desired outcome. The poor timing can come from lags in implementation, for instance, delay between the time that the policies are implemented and the time they take effect.
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The present value of $100 to be received one year from now
A) is $100. B) is $110. C) is $90. D) cannot be determined without knowing the interest rate.
According to traditional Keynesian economics, contractionary fiscal policy initiated by the federal government
Public housing is an example of
A. Money income. B. In-kind income. C. Personal expenditure. D. Free goods.
How does oligopoly differ from monopolistic competition?
What will be an ideal response?