Which of the following is a supply-side policy action to eliminate a recession?
A. An increase in the marginal tax rate.
B. Increased investment in infrastructure.
C. The purchase of securities in the open market by the Fed.
D. A decrease in the reserve requirement.
Answer: B
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Since 1962, which of the following federal expenditures, measured as a percentage of GDP, has decreased?
A) Social Security B) Medicare and Medicaid C) net interest D) defense
Progressive taxation serves which of the following goals of economic welfare policy?
A. Social insurance B. Economic growth C. Progressive taxation has all of these goals aimed at reducing inequality. D. Redistribution of wealth
Suppose that steak is a normal good and vegetables are inferior goods. Using a carefully-labeled diagram, illustrate the income-consumption curve that would result from an increase in a consumer's income.
What will be an ideal response?
When desired national saving equals desired national investment (in a closed economy), what market is in equilibrium?
A. The stock market B. The foreign exchange market C. The money market D. The goods market