During inflation, the optimal discretionary fiscal policy would be _____
a. to decrease taxes
b. to increase government spending
c. to decrease the reserve ratio
d. to increase taxes
e. to decrease the market interest rate
d
You might also like to view...
How would the Fed's sale of government bonds on the open market affect the money supply?
What will be an ideal response?
A "tight" money, easy "fiscal" policy combination will be preferred by society which values
A) low growth rates, but more goods and services in the future. B) public goods today greater than private goods in the future. C) private goods today more than public goods in the future. D) public and private goods in the future more than public and private goods today.
Josh runs a landscaping business in Vermont and decides to hire two people in India to maintain his bookkeeping for him electronically. Josh can pay them much less than he would pay a bookkeeper in the U.S., and the workers enjoy a higher quality of life in India thanks to their jobs with Josh's company. Josh's actions are an example of:
A. exporting. B. foreign direct investment. C. importing. D. foreign portfolio investment.
The potential for recipients of a loan to engage in riskier behavior after receiving the financing is called
A. adverse hazard. B. adverse selection. C. moral selection. D. moral hazard.