Suppose the current level of real GDP is below the full-employment level of real GDP. Which of the following represents a fiscal policy action that could be implemented to reduce the size of this recessionary gap?
A. Increase the money supply.
B. Decrease interest rates.
C. Increase government spending.
D. all of these
Answer: C
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What critical resource is likely to be the culprit for the impending doom of Social Security regarding tax collection? Explain
What will be an ideal response?
Debt-for-nature swaps are most generally
(a) beneficial only to the developing country. (b) beneficial only to the developed country. (c) beneficial only to the bank which can write off the debt. (d) beneficial to all countries.
If the present value of an individual's savings account is $52,354, what is its future value in 3 years if the account earns an annual interest rate of 8 percent?
A) $66,580.89 B) $66,320.48 C) $65,950.96 D) $64,589.13
The aggregate demand curve will shift rightward when there is:
a. a decrease in government spending. b. a decrease in incomes abroad. c. a tax increase. d. the expectation that future consumer income will rise.