Fiscal policy tries to influence target variables by manipulating
A) money supply.
B) interest rates.
C) government expenditures.
D) All of the above.
C
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The greater the tax wedge, the ________ the amount of employment and the ________ potential GDP
A) larger; smaller B) smaller; smaller C) smaller; larger D) larger; larger E) None of the above because the tax wedge does not affect employment or potential GDP.
Refer to the scenario above. If there is fairness penalty of $12, ________
A) this game will no longer have a Nash equilibrium B) this game will have two Nash equilibria C) Nash equilibrium will occur when both of you choose "friend" D) Nash equilibrium will occur when both of you choose "foe"
What is a normal profit?
What will be an ideal response?
If a nation follows a policy of being self-sufficient, its:
a. production possibilities equal its consumption possibilities. b. consumption possibilities are greater than its production possibilities. c. production possibilities curve shifts rightward. d. consumption possibilities are less than its production possibilities.