Expansionary fiscal policy can involve:
(a) Increasing consumption and investment and taxes.
(b) Increasing government spending and decreasing taxes.
(c) Increasing government spending and increasing taxes.
(d) None of the above.
Answer: (b) Increasing government spending and decreasing taxes.
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Government is viewed in the economic way of thinking as many different people interacting on the basis of
A) fear of punishment rather than hope for reward. B) legal considerations rather than profitability. C) prevailing property rights. D) principles of cooperation rather than of competition. E) regard for the public interest rather than private interest.
The BEA is the
A. Bureau of Educational Administration. B. Bureau of Educational Analysis. C. Bureau of Economic Alliances. D. Bureau of Economic Analysis.
Which of the following defines a flexible exchange rate?
A) An exchange rate determined by the market B) An exchange rate that fluctuates within a set band C) An exchange rate that is not allowed to vary D) An exchange rate that is backed by gold
Economic losses mean that firms will exit from a market in the short run.
Answer the following statement true (T) or false (F)