Functional finance is that part of the deficit that is attributable to
A. the exponential increase in interest rates.
B. spending programs or tax cuts passed to stimulate an economy in recession.
C. fighting the war on terror.
D. specific programs (like Medicare).
Answer: B
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Refer to Table 9-19. Looking at the table above, what is the rate of growth of the average price level from 2015 to 2016?
A) 1% B) 2% C) 3.5% D) 4.76% E) 5.25%
One reason stagflation is difficult to recover from is because:
A. wages are sticky downward. B. input prices increase with output prices. C. less output requires less inputs to be hired. D. prices tend to adjust more quickly downward than upward.
Which of the following is a rival good that is nonexcludable?
a. public good b. private good c. common resource d. none of the above
A decrease in the money supply
a. raises the interest rate, causing an increase in quantity demanded of investment and an increase in GDP b. lowers the interest rate, causing an increase in quantity demanded of investment and an increase in GDP c. raises the interest rate, causing a decrease in quantity demanded of investment and a decrease in GDP d. lowers the interest rate, causing a decrease in quantity demanded of investment and an increase in GDP e. lowers the interest rate, causing a decrease in quantity demanded of investment and a decrease in GDP