Which of the following is true with regard to the use of countercyclical fiscal policy as a stabilization tool?
What will be an ideal response?
Successful fiscal policy is difficult to achieve because Congress acts slowly and our ability to predict the future is limited.
You might also like to view...
In 2003, the Federal Reserve had used its control over the federal funds rate to such a degree that
A. the federal funds rate was the highest it had been in 15 years. B. Congress stripped the Federal Reserve of this authority. C. the federal funds rate was the lowest it had been in 15 years. D. the federal funds rate was driven below zero.
If an industry has 25 firms that collectively have $150 million in total sales and the top four firms in this industry account for $90 million in sales, what is the concentration ratio of the top four firms in this industry?
A. 70 percent B. 80 percent C. 60 percent D. 42 percent
A midwestern farmer grows wheat and sells it to a miller for $500 . After processing, the miller sells the flour to a baker for $800, who then sells it to a grocery store for $1,000 . The grocery store sells it to customers for $1,200 . In these transactions, how much has been added to GDP?
a. $500 b. $800 c. $1,000 d. $1,200 e. $3,500
The marginal propensity to consume rises as the absolute level of income increases
Indicate whether the statement is true or false