Government programs that automatically shift the government budget toward a deficit during recessions and a surplus during recoveries are called
a. discretionary fiscal policy.
b. automatic stabilizers.
c. progressive taxation.
d. price deflators.
B
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A fall in the real interest rate
A) results in a movement along the demand for loanable funds curve. B) shifts the demand for loanable funds curve rightward. C) shifts the demand for loanable funds curve leftward. D) has no effect on the demand for loanable funds curve
Janice earns an income of $2,000 a week and goes out to lunch 4 times a week. If her income increased to $2,100 she would go out to lunch 5 times a week. Compute Janice's income elasticity of demand
A) 0.22 B) 4.56 C) 2.28 D) -0.22
Everything else being equal, a job in which workers face a relatively small chance of being laid off would generally have
a. a lower wage rate b. a higher wage rate c. more fringe benefits d. higher skill requirements e. no expected wage differentials in equilibrium
A bank loans Kellie's Print Shop $350,000 to remodel a building near campus to use as a new store. On their respective balance sheets, this loan is
a. an asset for the bank and a liability for Kellie's Print Shop. The loan increases the money supply. b. an asset for the bank and a liability for Kellie's Print Shop. The loan does not increase the money supply. c. a liability for the bank and an asset for Kellie's Print Shop. The loan increases the money supply. d. a liability for the bank and an asset for Kellie's Print Shop. The loan does not increase the money supply.