Answer the following statement(s) true (T) or false (F)
1.The tax cuts made by Presidents Johnson and Reagan both led to a decline in economic growth.
2.Over time, any permanent change in government purchases must be fully offset by a change in private expenditure.
3.The time span before enough data are gathered to indicate the actual presence of a downturn is known as the recognition lag.
4.Unemployment insurance is the most important automatic stabilizer.
5.Changes in government transfer payments or tax collections that automatically tend to counter business cycle fluctuations are known as discretionary policies.
1.false
2.true
3.true
4.false
5.false
You might also like to view...
Savers who do not want to research the credit-worthiness of borrowers take advantage of ________ finance, where risk is ________
A) direct, spread B) direct, concentrated C) indirect, spread D) indirect, concentrated
In the European model the stakeholder plays a less prominent role than in the Anglo-Saxon model
a. True b. False
Which of the following would most likely serve as an example of a monopoly?
a. a restaurant in a large city b. a dry cleaners in a large city c. a local gas station d. a local electrical company
A key difference between functional finance and sound finance is that in the functional finance approach, the government has the potential for:
A. a less active role in spending and taxing decisions. B. more active role in spending and taxing but only during depressions. C. no role since functional finance holds that on moral principle the budget should be balanced. D. a more active role in spending and taxing decisions.