Expansionary fiscal policy involves
A) decreasing the money supply and increasing interest rates.
B) increasing taxes or decreasing government purchases.
C) increasing the money supply and decreasing interest rates.
D) increasing government purchases or decreasing taxes.
D
You might also like to view...
All games share three characteristics. Two of these characteristics are rule and strategies. What is the third characteristic called?
A) payoffs B) competition C) collusion D) results
The price of a new textbook increases from $75 to $90 while the price of used copies of the textbook increases from $50 to $65. Other things equal, we would expect to observe
A) the quantity demanded of the used textbook to increase while the quantity demanded of the new textbook to fall. B) the quantity demanded of both to fall. C) the demand for the new textbook to increase while the demand for the used textbook to decrease. D) the quantity demanded of the used textbook to decrease and the quantity demanded of the new textbook to increase.
Susie spends more of October thinking about her Halloween costume than she spends thinking about a proposed law that will be on the November ballot. Which of the following is true?
a. This behavior is rational if she expects a greater benefit from the costume than from any possible effect her vote could have on the proposed law. b. This behavior is rational if she is planning to spend the time from Halloween to Election Day thinking about the law. c. This behavior is not rational because the law is more important than the costume. d. In order for this behavior to be considered rational, it would have to be true that Susie is too ignorant to fully understand the law. e. In order for this behavior to be considered rational, it would have to be true that Susie would not be affected by the law.
Which statement is an economic rationale for the law of increasing opportunity cost?
A. The economy is employing all of its available resources. B. Many economic resources are better at producing one product than another. C. The economy is achieving productive efficiency by producing goods and services at the least cost. D. In any economy, the state of technology is changing and resources are variable.