Economic expansion and growth are the only objectives that U.S. policymakers consider when they implement tax, spending and financial policies that affect the U.S. economy.
Answer the following statement true (T) or false (F)
False
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The arithmetic difference between the nominal rate of interest and the expected rate of inflation is the
A. expected interest rate. B. real interest rate. C. implied interest rate. D. contractual interest rate.
Which of the following events occurred during the 2000 to 2005 time-frame and had an important impact on the deficit/surplus projections?
A. The steep decline in taxable capital gains that resulted from declines in the Stock Market from March 2000 to the end of 2002 B. The decrease in unemployment rates from 2002 to 2003 C. The increase in interest rates from 2001 to 2003 D. The increase in inflation rates from 2000 to 2002
Attempts to fine-tune the economy through shifts in fiscal and monetary policy
A) cannot alter the level of unemployment but may change the price level. B) may not do any good but certainly do no harm. C) produce greater stability, but only at the cost of an ever-increasing national debt. D) will increase rather than reduce instability if the policy makers lack adequate information.
What is the money multiplier and what affects its size?
What will be an ideal response?