One of the potential economic problems associated with the extensive use of macropolicy to recover from the Great Recession is
A. the huge government deficits and the flood of money into the banks could set off an inflationary spiral.
B. the large amount of government spending for job creation could result in rapid and uncontrollable increases in wages.
C. the flood of money into the banks could cause excessive investment expenditures in the economy.
D. the tax rebates made available to consumers could cause uncontrollable increases in the price of housing.
A. the huge government deficits and the flood of money into the banks could set off an inflationary spiral.
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The most important function of the Fed is to
A) provide a system for collecting and clearing checks. B) regulate the money supply. C) collect taxes. D) support the federal government's deficit spending by buying government securities.
Suppose the price of a product is less than its average variable cost. When the firm's fixed obligations are completely ended, it will now most likely
a. make an economic profit b. go out of business c. expand to a bigger operation d. continue to be shut down e. break even
Poll taxes are:
A. a way to disenfranchise the poor. B. used to disenfranchise those groups even when the right to vote exists. C. a tax that must be paid in order to cast a vote. D. All of these are true.
In the long run in a monopolistically competitive market, a firm will, in theory,
A. suffer losses. B. earn zero accounting profits. C. earn economic profits. D. break even.