According to the Keynesian model, which of the following policies would be most appropriate during a period of rapid inflation?
a. a tax cut
b. a budget deficit
c. a budget surplus
d. an increase in the money supply
C
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In the figure above, a decrease in the quantity of oil supplied but NOT a decrease in the supply of oil is shown by a movement from
A) point a to point e. B) point a to point b. C) point a to point c. D) point a to point d.
In the United States, the largest source of funds for public schools is
A) the consumption tax. B) the property tax. C) sales taxes. D) the federal income tax.
The collapse of the Bretton Woods system marked
A) the end of floating exchange rates and a move to fixed exchange rates. B) marked the end of fixed exchange rates and a move to floating exchange rates. C) the beginning of the gold standard. D) a plunge in the price of gold. E) the elimination of paper currencies.
Before World War II, Alcoa controlled the supply of bauxite in the United States. Because bauxite is a scarce resource that is vital to the production of aluminum:
a. Alcoa was bound to charge a nominal price in the U.S. aluminum market. b. Alcoa had a monopoly in the U.S. aluminum market. c. the U.S. aluminum market was highly competitive. d. Alcoa can be said to have operated in a monopolistically competitive market. e. Alcoa can be said to have operated in an oligopolistic market structure.