Which of the following would NOT be part of an expansionary fiscal policy?
A. Increased transfer payments to individuals and businesses
B. Decreases in federal taxes on corporations
C. Increased government tax revenues to sustain spending levels without borrowing
D. An expanding federal deficit
C. Increased government tax revenues to sustain spending levels without borrowing
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Refer to the above figure. Which arrows represent items that are not measured in dollar terms?
A) Arrows A and B B) Arrows C and D C) Arrows A and D D) Arrows B and C
During the recession of 2009, the consumption function temporarily shifted ________ as a fall in house prices ________ wealth and encouraged people to ________ more
A) downward; raised; spend B) downward; raised; save C) upward; lowered; save D) downward; lowered; save E) downward; lowered; spend
When the Fed lowers the federal funds rate, which of the following economic variables responds most slowly?
A) other short-term interest rates B) the inflation rate C) consumption expenditure D) the long-term real interest rate E) the supply of loanable funds
Suppose Kevin offers to match his competitors' prices in an oligopoly market. This will have the effect of:
A. providing consumers with the lowest possible price. B. decreasing his competitors' incentive to reduce price. C. driving out his competition. D. triggering an antitrust investigation.