Expansionary fiscal policy is used to

A) combat inflation.
B) combat recessions.
C) encourage private saving.
D) make businesses more efficient.


Answer: B) combat recessions.

Economics

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A buyer is willing to buy 10 units of a good at a maximum price of $10 per unit. The reservation value of the buyer in this case is:

A) $1. B) $10. C) $20. D) $100.

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An individual whose attitude toward risk is illustrated in Figure 5.1 is

A) risk averse. B) risk loving. C) risk neutral. D) None of the above is necessarily correct.

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Transfer prices should be set to so

A) to maximize profits for only one unit in a multi-unit firm. B) allow arbitrage with the external market place. C) to maximize profits for the overall firm. D) none of these choices.

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Which of the following is a reason behind income being considered a tax base? a. It is earned

b. It is subsidized. c. It is taxed. d. It is used to buy goods and services.

Economics