Expansionary fiscal policy involves
A) increasing government purchases or decreasing taxes.
B) increasing taxes or decreasing government purchases.
C) increasing the money supply and decreasing interest rates.
D) decreasing the money supply and increasing interest rates.
Answer: A
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Which of the statements below best captures the meaning of competition as discussed in Chapter 5?
A) Competition is a process; it makes everyone in the society better off even though there can only be one winner. B) Competition is an individualist system in which people do not concern themselves with the welfare of others. C) Competition is the law of the jungle producing social wealth. D) Competition is the process of trying to outdo others. E) Competition occurs when people strive to satisfy the criteria others are using to allocate valued goods.
How are TIPS adjusted for inflation?
A) The interest rate is adjusted for inflation during each period. B) The principal is adjusted once the bond reaches maturity. C) The principal is adjusted for inflation each period. D) The interest rate is adjusted once the bond reaches maturity.
If Argentina suffers from capital flight, Argentinean domestic investment and Argentinean net exports will both decline
a. True b. False Indicate whether the statement is true or false
Bank interest rates on short-term business loans during the late 1970s
A. had an upward trend. B. had a downward trend. C. stayed about the same.