Automatic stabilizers
A. include legislation making them more effective.
B. require legislation by congress to be made effective.
C. help smooth out the business cycle.
D. simultaneously stabilize the economy and tend to reduce the size of the public debt.
C. help smooth out the business cycle.
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Using equations for public and private saving, show that saving must equal investment in a closed economy. Begin with the expression for total saving in the economy
What will be an ideal response?
The main determinant of the discount rate on a privately issued bank note was:
a. how long the issuing bank had been in operation. b. who was on the issuing bank's board of directors. c. the general reputation of the issuing bank. d. the distance of the issuing bank from the location where the note was being used.
Which of the following statements is true about the Medicaid program?
a. Eligibility standards are uniform across states. b. The program is totally funded by federal tax revenues. c. Everyone in the poverty-level population is eligible for benefits. d. About 20% of total outlays are for nursing home and home health care for the elderly. e. All of the above are true.
Even if everyone agreed on policy priorities, there would still be trade-offs related to economic policy.
Answer the following statement true (T) or false (F)