If fiscal policy were able to exert a significant impact on the economy during the Great Depression, we would expect
a. an increase in government expenditures and a reduction in budget deficits.
b. an increase in government expenditures and an increase in budget deficits.
c. a decrease in government expenditures and a reduction in budget deficits.
d. a decrease in government expenditures and an increase in budget deficits.
B
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The Gini ratio is a measure of
A) income inequality. B) wealth distribution. C) income distribution. D) income as compared to wealth.
Sarah and Andrew are two traders in a pure exchange economic with two goods, Bikes (B) and Computers (C). Sarah's preferences are described by the Cobb-Douglas Utility function:
US = BS1/3CS2/3 Andrew's preferences are given by: UA = BA1/2CA1/2 Assume the price of Bikes is 1 and the price of computers is p. The initial endowments are BA = 10, BS = 20, CA = 20 and CS = 10. Solve for the competitive equilibrium prices (relative prices) and quantities.
Compared to an efficient perfectly competitive industry, the monopolist will
A) produce less output at a higher total cost. B) produce less output and charge a higher price. C) produce more output at a higher price and higher profit. D) produce more output at a lower price.
Which English colony was the first permanent settlement in America?
a. Roanoke b. Plymouth c. Jamestown d. Mexico e. Quebec