The most appropriate countercyclical policy, or stabilization policy, in times of unemployment, according to classical economists, is for the government to:
A. increase the minimum wage.
B. do nothing.
C. stimulate aggregate demand.
D. cut taxes.
Answer: B
You might also like to view...
The market where borrowers obtain funds from savers is referred to as the:
A) capital market. B) exchange market. C) spot market. D) credit market.
In ________ market structure, a firm's output depends ________
A) an oligopoly; only on its own marginal revenue and marginal cost curves B) a monopolistically competitive; in part on its competitors' price and quantity decisions C) an oligopoly; in part on its competitors' price and quantity decisions D) a monopolistically competitive; only on its marginal revenue curve
During World War II, whenever interest rates would ________ and the price of bonds would begin to ________, the Fed would make open market purchases
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
The ratio of the liabilities of a financial institution to equity capital is called
A) leverage. B) assets. C) liabilities. D) equity.