Which of the following represents the use of fiscal policy to achieve a fiscal stimulus?
A. Greater government expenditure or higher taxes.
B. Greater government expenditure or lower taxes.
C. Lower government expenditure or lower taxes.
D. Lower government expenditure or higher taxes.
Answer: B
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U.S. net export spending falls when
A) the inflation rate is lower in the United States relative to other countries. B) the growth rate of U.S. GDP is faster than the growth rate of GDP in other countries. C) the value of the U.S. dollar decreases relative to other currencies. D) the price level in the United States falls relative to the price level in other countries.
One of the costs of the Federal Deposit Insurance Corporation's protection is
a. bank managers may take great risks with depositors' money b. the public pays closer attention to the bank managers' actions c. the Fed was forced to reduce its regulation of banks d. bank managers may act too cautiously with depositors' money e. banks' profits increased
Assume the price of gasoline is $2.40 per gallon, and the equilibrium quantity of gasoline is 12 million gallons per day with no tax on gasoline. Starting from this initial situation, which of the following scenarios would result in the largest deadweight loss?
a. A 10 percent increase in the price of gasoline reduces the quantity of gasoline demanded by 2 percent and it increases the quantity of gasoline supplied by 5 percent; and the tax on gasoline amounts to $0.40 per gallon. b. A 10 percent increase in the price of gasoline reduces the quantity of gasoline demanded by 2 percent and it increases the quantity of gasoline supplied by 7 percent; and the tax on gasoline amounts to $0.40 per gallon. c. A 10 percent increase in the price of gasoline reduces the quantity of gasoline demanded by 1 percent and it increases the quantity of gasoline supplied by 8 percent; and the tax on gasoline amounts to $0.35 per gallon. d. There is insufficient information to make this determination.
Which of the following are not important areas of remaining scientific uncertainty regarding global climate change?
A) Whether or not greenhouse gases trap heat in the atmosphere. B) Whether or not the planet has warmed on average. C) Whether or not agriculture in the United States will be adversely affected by climate change. D) Whether or not concentrations of carbon dioxide have increased in the atmosphere.