During a recession, unemployment benefit payments increase without the need for any government action. This increase is an example of
A) discretionary monetary policy.
B) discretionary fiscal policy.
C) automatic fiscal policy.
D) government expenditure but it is not an example of either discretionary or automatic policy.
E) automatic monetary policy.
C
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A home theater system and an HD television would be considered an example of:
A) substitute goods. B) giffen goods. C) inferior goods. D) complementary goods.
The tyranny of collateral ________
A) suggests that government tax rates are too high in the United States B) gives rise to the twin problems of moral hazard and adverse selection C) implies that when a poor person has a good idea they find it difficult to acquire financing D) attributes moral hazard to excessive government regulation
Imagine a central banker who takes office believing that, ultimately, the best way to stimulate an economy is to keep people guessing. This means the policy maker will often, but not always, announce one change but then actually do something else. What do you think of the central bank's chances for achieving its objectives and why?
What will be an ideal response?
When Carvana sold stock to the public in its IPO, it did so through the New York Stock Exchange. This is an example of Carvana using ________ to raise funds
A) indirect finance B) direct finance C) bonds D) corporate governance