Citizens and investors in Argentina interpreted the government's fiscal stimulus response to the country's financial crisis as:
A. a bad sign and drastically increased their spending and investing as a result.
B. a bad sign and drastically reduced their spending and investing as a result.
C. a good sign and drastically increased their spending and investing as a result.
D. a good sign and drastically reduced their spending and investing as a result.
Ans: B. a bad sign and drastically reduced their spending and investing as a result.
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According to classical economists, in recessions, the government should
A) stimulate the economy to increase demand. B) actively use fiscal policy to combat the recession. C) increase the minimum wage so that poor people will be able to afford necessities. D) eliminate barriers to labor market adjustment, such as burdensome regulations on businesses.
To date, the longest prison sentence for violating the Sherman Act has been ________ years.
A) ten B) eight C) two D) five
When an economy experiences deflation, investment will:
A. decrease, because businesses will not take out loans that will increase in value over time. B. increase, because businesses will take out loans that will increase in value. C. decrease, because businesses will spend cash instead of borrowing it. D. increase, because businesses will spend cash instead of borrowing it.
Which is not considered a need?
a. food b. clothing c. shelter d. smartphone