A budget philosophy using fiscal policy to achieve the economy's potential GDP, rather than balancing budgets either annually or over the business cycle, is termed:
a. budget finance
b. functional finance.
c. crowding out.
d. crowding in.
e. deficit finance.
b
You might also like to view...
According to the quantity theory of money, a shortage of money should result in deflation (falling prices) or negative growth (decreasing quantities of output)
Indicate whether the statement is true or false
Consumers are sovereign when
A) prices are decided by sellers. B) a few consumers exercise coercion on sellers and other consumers. C) they can prevent market failure. D) they have the freedom to decide what they wish to purchase.
Retained earnings are
A) the funds held back to pay out dividends. B) the funds used to pay corporate taxes. C) profits not given out to stockholders. D) the reason there is double taxation.
In general, as the amount of labor input increases, the amount of output
a. increases. b. decreases. c. remains constant. d. increases only if the capital stock also increases.