A(n) ________ is an effort to kick-start the economy by increasing government spending or lowering interest rates.
A. speculative bubble
B. austerity measure
C. financial crisis
D. economic stimulus
Answer: D
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All levels of government combined spend approximately 35 percent (plus or minus 3 percent) of GDP
Indicate whether the statement is true or false
When an established domestic industry is in jeopardy of being displaced by lower-priced imports, then there could be a rationale for encouraging imports
Indicate whether the statement is true or false
Graph If this is a trading (open) economy, the price of a car will be:
a. $6,000 per car b. $8,000 per car c. $10,000 per car d. $14,000 per car
Refer to the diagram. The movement down the production possibilities curve from point A to point E suggests that the production of:
A. computers, but not bicycles, is subject to increasing opportunity costs.
B. bicycles, but not computers, is subject to increasing opportunity costs.
C. both bicycles and computers is subject to constant opportunity costs.
D. both bicycles and computers is subject to increasing opportunity costs.