Which of the following statements is most accurate about fiscal policy since the end of the Great Recession?
A. Cyclically adjusted deficits that occurred in 2009 eventually gave way to cyclically adjusted surpluses as the economy recovered.
B. The cyclically adjusted budget remained in deficit, but those deficits became smaller from 2009 to 2015, so fiscal policy became contractionary.
C. The cyclically adjusted budget remained in deficit and those deficits became smaller from 2009 to 2015, but fiscal policy remained expansionary.
D. Cyclically adjusted deficits rose steadily from 2009 to 2015, so fiscal policy became increasingly expansionary.
Answer: C
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The largest source of revenue for the federal government of the United States is from
A) tariffs collected on imported goods. B) property taxes imposed on private property. C) individual income taxes. D) sales taxes on items purchased for consumption.
Refer to the payoff matrix below. Which of the following is true for Best Lights?
A) They do not have a dominant strategy.
B) Their pure strategy is to set a Low Price.
C) They do not have a pure strategy.
D) Their pure strategy is to set a High Price.
Fundamental analysis is
a. the study of the relation between risk and return of stock portfolios. b. the determination of the allocation of savings between stocks and bonds based on a person's degree of risk aversion. c. the study of a company's accounting statements and future prospects to determine its value. d. a method used to determine how adding stocks to a portfolio will change the risk of the portfolio.
In a grim-trigger strategy, a firm responds to underpricing by choosing a price so low that each firm makes zero economic profit.
Answer the following statement true (T) or false (F)