Which of the following will most likely provide fiscal stimulus to the economy?
A. Decreasing government spending on goods and services.
B. Increasing transfer payments.
C. Higher interest rates.
D. Increasing taxes.
Answer: B
You might also like to view...
The cost of producing each bottle of a certain brand of shampoo is $0.25. If the market for shampoo is monopolistically competitive and demand for shampoo is inelastic, a manufacturer who charges $0.35 for each bottle will ________
A) shut down production in the short run B) exit the industry in the long run C) earn an economic profit of $0.10 per bottle D) earn a total revenue of $0.10 per bottle
Discuss why the World Bank has been criticized for making loans to nations that can attract private funds
What will be an ideal response?
Suppose the Pleasant Corporation cuts the price of its American Girl dolls by 10 percent, and as a result, the quantity of the dolls sold increases by 25 percent. This indicates that the price elasticity of demand for the dolls over this range is:
a. 2.5. b. 0.4. c. 0.5. d. 5.0.
Economists disagree on whether labor taxes cause small or large deadweight losses. This disagreement arises primarily because economists hold different views about
a. the size of labor taxes. b. the importance of labor taxes imposed by the federal government relative to the importance of labor taxes imposed by the various states. c. the elasticity of labor supply. d. the elasticity of labor demand.