Which of the following is an example of discretionary fiscal policy?
A) a decrease in income tax receipts with falling income during a recession
B) tax cuts passed by Congress in 2008 to combat the recession
C) a decrease in food stamps issued during an expansion
D) an increase in unemployment insurance payments during a recession
B
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During the Great Depression, cyclical unemployment increased as the recession continued. This increase in cyclical unemployment
A) increased the natural rate of unemployment. B) could have increased or decreased the natural rate of unemployment. C) decreased the natural rate of unemployment. D) had no effect on the natural rate of unemployment.
The Nash equilibrium was named after
a. Tom Nash b. John Nash c. Robert Nash d. Kelvin Nash
If something is addictive, then
A) price and demand are inversely related. B) price elasticity of demand is equal to one. C) demand is perfectly inelastic. D) demand is perfectly elastic.
The Security Market Line depicts the relationship between the:
A. average expected rate of return on stocks and the average expected rate of return on bonds. B. average expected rate of return of a financial asset and the discount rate. C. risk level of a financial asset and the prime interest rate. D. average expected rate of return and risk level of a financial asset.