When considering activist fiscal policy in developing countries, these governments:
A. do not have to worry about their expenditures because they have no taxes with which to finance them.
B. usually have greater flexibility in determining expenditures than governments in developed countries.
C. have about the same degree of flexibility in determining expenditures as governments in developed countries.
D. usually have less flexibility in determining expenditures than governments in developed countries.
Answer: D
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In which decade did the U.S. federal government first establish a system of agricultural price supports?
A) 1990s B) 1970s C) 1950s D) 1930s
Fiscal policy is:
A. government decisions about the level of taxation and public spending. B. congressional budget office decisions. C. the decisions that affect the available money supply in the economy. D. government decisions about the level of the interest rate in the economy.
Assume that when $100 of new reserves enter the banking system, the money supply ultimately increases by $800 . Assume also that no banks hold excess reserves and that the entire money supply consists of bank deposits. If, at a point in time, reserves for all banks amount to $750, then at that same point in time, loans for all banks amount to $6,000
a. True b. False Indicate whether the statement is true or false
The product-variety externality is associated with the
a. producer surplus that accrues to incumbent firms in a monopolistically competitive industry. b. loss of consumer surplus from exposure to additional advertising. c. consumer surplus that is generated from the introduction of a new product. d. opportunity cost of firms exiting a monopolistically competitive industry.