Which of the following arguments is not a valid argument against the effectiveness of the fiscal stimulus bill?
A. Employment continued to fall into early 2010.
B. Without stimulus recessions come to an end naturally.
C. State and local government spending increased.
D. Monetary policy played a large role in stimulating the economy.
Answer: C
You might also like to view...
Why are the losers from free international trade not fully compensated for their losses?
A) The amount of compensation needed would bankrupt the government. B) The losers are foreigners. C) The people who claim to lose are also the same ones who benefit. D) No one actually loses from international trade. E) Identifying all losers and the size of their losses is extremely difficult.
According to rational expectations theory,
A) every day is a new day and yesterday's occurrences have no bearing on today's decisions. B) when making decisions a person will consider only information based on past experience. C) even though a person considers information related to future events as potentially important for decision making, he realizes that such information is unreliable and worthless. D) past experience is a good guide for decision making, but so is information related to possible future outcomes.
To eliminate a recessionary gap, the Fed can _____
Fill in the blank(s) with the appropriate word(s).
Table 24.1Monopoly Costs and RevenueQuantityPriceTotal Cost1$500$4002$450$6503$400$9504$350$1,3005$300$1,700In Table 24.1, using the profit maximization rule, a monopolist will produce
A. 3 units. B. 5 units. C. 1 unit. D. 4 units.