Fiscal policy is purposeful movements in ________ designed to direct an economy.
A. legal structures
B. interest rates
C. government regulations
D. government spending and taxes
Answer: D
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Consider the production possibilities frontier in the figure shown. As more and more cigars are produced the opportunity cost of producing more cigars:
A. decreases.
B. stays the same.
C. increases.
D. decreases then increases.
Increasing government taxation or regulation of an industry generally increases the supply of goods
a. True b. False Indicate whether the statement is true or false
Say that the equilibrium price of natural gas would be $5 per thousand cubic feet, but there is a price floor imposed at $7 per thousand cubic feet. That price floor is then lowered to $5 per thousand cubic feet. As a result, a. the shortage of natural gas will get worse
b. the shortage of natural gas will get less severe. c. the surplus of natural gas will get worse. d. the surplus of natural gas will be eliminated.
If the Fed wished to eliminate an inflationary gap, which of the following would be an appropriate policy?
What will be an ideal response?