When the U.S. economy hits a recession, fiscal policy automatically becomes:
A. expansionary because average tax rates go down and spending on welfare programs goes up.
B. discretionary because the government is quick to react to changes in the business cycle.
C. contractionary because average tax rates go up and spending on welfare programs goes down.
D. contractionary because average tax rates go down and spending on welfare programs goes up.
A. expansionary because average tax rates go down and spending on welfare programs goes up.
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Suppose that in the free market, where the supply of the foreign currency is equal to demand for that currency, the peso-dollar exchange rate is 4 pesos = $1
Assume the central bank sets an official exchange rate at 3 pesos = $1, we can say that in the official market the dollar is A) overvalued. B) undervalued. C) appreciated. D) None of the above.
In terms of economic growth, educated workers are generally:
A. more productive. B. less productive. C. less healthy. D. happier.
College students who increase their human capital by acquiring the skills required for certain occupations typically earn higher incomes than high school graduates. This is called:
A. the learning effect of a college education. B. the signaling effect of a college education. C. the discriminatory effect of a college education. D. None of these
If GNP is $800 billion and depreciation is $90 billion, then net national product is
A. $710 billion. B. $845 billion. C. $890 billion. D. $980 billion.