In 2008-2009, which of the following weakened the demand stimulus effects of expansionary fiscal policy?
a. the unwillingness of the federal government to run budget deficits
b. the heavy indebtedness of American households
c. a high level of household spending on big-ticket items such as houses and cars, which do not promote economic growth
d. the continuation of the high saving rates on the part of Americans
B
You might also like to view...
To close a recessionary gap, the Federal Reserve must ________ real interest rates by ________ the money supply.
A. increase; decreasing B. decrease; increasing C. increase; increasing D. decrease; decreasing
Describe what took place during the Industrial Revolution
What will be an ideal response?
Why do convex indifference curve have a negative slope?
A) because to keep utility constant, a consumer must get more of one good if she is to give up some of the other B) because scarcity implies that it is not possible to consume more of one good without giving up some of the other C) because consumers take market prices as given D) because consumers face a budget constraint
In the days before electronic market transactions, if only a few people had ready access to exchange-rate information, such as knowing the latest on euros per dollar or dollars per Mexican peso, then there was the possibility for
a. market forces to create fixed exchanged rates b. government fixing exchange rates c. arbitrage d. exchange rate controls e. unintentional trade deficits