If Congress passes legislation to cut taxes and increase government spending to counter the effects of a severe recession, this would be an example of a(n):
A. expansionary fiscal policy.
B. budget surplus.
C. cyclically adjusted budget.
D. contractionary fiscal policy.
Answer: A
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Why are high domestic savings rates important?
What will be an ideal response?
One benefit to private sector production of a collective consumption good is _____
a. it overcomes the free riding problem b. private producers can often bundle the good with something else people value c. profits from private companies can be taxed d. provides information valuable in allocating future resources
A movie producer has to decide to fund a new movie project. For this project, a success would earn $20 million and a failure would cost $60 million in lost profits. At what probability of expected success should he fund the movie?
a. 0.20 b. 0.25 c. 0.50 d. 0.75
The practice of tying is used to
a. enhance the enforcement of antitrust laws. b. encourage the enforcement of collusive agreements. c. control the retail price of a collection of related products. d. package products to sell at a combined price closer to a buyer's total willingness to pay.