According to traditional Keynesian economics, expansionary fiscal policy initiated by the federal government
A) is never appropriate.
B) is an appropriate way to prevent recessions and depressions.
C) is an appropriate way to slow down an over-heated economy.
D) will always fail due to crowding out effects.
Answer: B) is an appropriate way to prevent recessions and depressions.
You might also like to view...
The benefit of holding money is ________, while the opportunity cost of holding money is ________.
A. its usefulness in carrying out transactions; the nominal interest rate B. increased income; lost purchasing power C. the nominal interest rate; the fees charged by banks D. the nominal interest rate; its usefulness in carrying out transactions
Adverse selection is a problem that arises:
A. before the parties have entered into an agreement. B. after the parties have voluntarily entered into an agreement. C. either before or after the parties have entered into an agreement. D. rarely in any market.
If a publishing company purchases faster computers to speed up word processing,
a. the marginal product of its editors will increase, which will shift the demand for editors to the right b. the marginal product of its editors will increase, which will shift the demand for editors to the left c. the wages of its editors will increase, which will shift the demand for editors to the right d. the wages of its editors will decrease, which will shift the demand for editors to the right e. the supply of editors will decrease
Under an oligopoly market structure, rival firms take completely independent decisions
a. True b. False Indicate whether the statement is true or false