Fiscal restraint is
A. Tax cuts or spending increases meant to reduce aggregate demand.
B. Changes in taxes and spending intended to increase aggregate supply.
C. Tax hikes and/or spending cuts intended to reduce aggregate demand.
D. Not possible because Congress continues to spend too much money.
Answer: C
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If Jacqueline is willing to accept $1 for a cupcake and Jameson is willing to pay $3 for a cupcake, the consumer surplus will ________ if the negotiated price is $1.50 as opposed to $2.00
A) increase B) decrease C) not change D) All of the above are possibilities.
If you want a say in the management of a corporation, you should buy
A) common stock. B) preferred stock. C) bonds. D) either bonds or preferred stock.
Which of the following is not assumed before the implementation of a policy? a. The appropriate policy is selected instantaneously
b. The appropriate policy is implemented instantaneously. c. Once implemented, the policy works as advertised. d. The policy, once implemented, works in no time. e. Lags that reduce the effectiveness of the policy are predictable.
The imposition of a binding price ceiling on a market causes quantity demanded to be a. greater than quantity supplied. b. less than quantity supplied
c. equal to quantity supplied. d. Both (a) and (b) are possible.