Fiscal stimulus is most likely to direct resources into productive projects when spending decisions are left in the hands of
a. government agencies.
b. consumers.
c. Congress.
d. lobbyists and special-interest groups.
B
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When the total U.S. production of goods and services is divided into consumption goods and services, capital goods, government goods and services, and export goods and services, the largest component is
A) consumption goods and services. B) capital goods. C) government goods and services. D) export goods and services. E) capital goods and government goods and services tie for the largest component.
Differences in stages of development among countries are reflected in a number of ways besides per capita income
a. True b. False
When the long-run average total cost curve is increasing, this means that there are
a. economies of scale b. diseconomies of scale c. constant returns to scale d. diminishing returns e. some fixed factors of production
In the rational expectations view, the best approach to fiscal policy is for the government to:
A. Cut taxes B. Balance its budget C. Eliminate transfer payments D. Fix government spending