Joan Robinson, the author of The Second Crisis of Economic Theory, argued that the content of fiscal policy is as important as its aggregate impact on the economy.
Answer the following statement true (T) or false (F)
True
The relative emphasis on, and sometimes exclusive concern for, stabilization objectives when using fiscal policy, to the neglect of related GDP content, has been designated by Joan Robinson as the 'second crisis of economic theory.'
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Which of the following is true?
a. The stock market provides investors with an opportunity to own a fractional share of the firm's future profits. b. A new stock issue is often an excellent way for a firm to raise funds for future expansion. c. Changes in stock prices provide information about what investors think of various business decisions. d. All of the above are true.
Suppose that GDP was $200 billion in year 1 and that all other components of expenditures remained the same in year 2 except that business inventories fell by $10 billion. GDP in year 2 is:
A. $180 billion. B. $190 billion. C. $200 billion. D. $210 billion.
When the Federal Reserve was unable to stem the bank panics of the 1960s, Congress responded by:
A. creating the FDIC and offering deposit insurance. B. declaring a bank holiday and closing banks for 30 days. C. ordering the printing of tens of billions of dollars of additional currency. D. taking over the lender of last resort function and assigning this function to the U.S. Treasury.
Which of the following is responsible for invoking the Fed's emergency powers?
A. FOMC B. a majority of the Federal Reserve Bank presidents C. Board of Governors D. Fed Chairman