The increase in the federal deficit due to the 2009 stimulus package may have had a smaller impact on the economy due to forward-looking households and firms
A) reducing consumption and investment expenditures in anticipation of future tax increases.
B) purchasing more treasury securities to finance the stimulus package and purchasing fewer goods and services.
C) taking advantage of the strong U.S. dollar to purchase more imported goods.
D) waiting for the real interest rate to fall before borrowing to make long-term investments.
A
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The government could close an inflationary gap by increasing government spending by some amount greater than taxes
Indicate whether the statement is true or false
Economists are unanimous in their belief that advertising is socially inefficient
a. True b. False Indicate whether the statement is true or false
An import quota is:
A. a limit on the amount of a particular good that can be exported. B. a tax on the good or services that are imported. C. a limit on the amount of a particular good that can be imported. D. None of these is true.
Suppose Australia subsidizes its wine exports. Which one of the following groups will benefit from this policy?
A. Australian wine consumers B. Australian taxpayers C. American wine producers D. American wine consumers