Fiscal policy is
A) the selling of government bonds by the Treasury.
B) the deliberate manipulation of the money supply designed to affect the interest rate.
C) the deliberate manipulation of taxation and spending designed to affect the economy.
D) the selling of foreign exchange reserves designed to change the exchange rate.
C
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In 1981, in San Francisco Solano, Argentina, about 1,800 families took over a piece of wasteland. The government was able to deed 60 percent of this land to some families while the remaining part could not be deeded. The resulting houses varied greatly, based on whether the residents received title. Those who received title also behaved differently, having fewer children, and the children
experienced more education and better health. This is an example of the results from: a. scarcity. b. economic growth. c. economic freedom. d. private property rights. e. improved quality of life.
If the rate of interest is fixed, a profit-maximizing firm will employ capital up to the quantity where MRP = interest rate
Indicate whether the statement is true or false
If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A. short-run supply shock. B. long-run supply shock. C. long-run demand shock. D. short-run demand shock.
Exhibit 2-7 Production possibilities curve
For the economy shown in Exhibit 2-7 to operate at point C, it must:
A. be willing to lower the price of grain. B. use its given resources more efficiently than it would at point A. C. experience resource unemployment. D. experience an increase in its resources and/or an improvement in its technology.