When the government deliberately alters its level of spending and/or taxes in order to achieve specific national economic goals, it is exercising
A) a laissez-faire policy.
B) discretionary fiscal policy.
C) monetary policy.
D) a Ricardian policy.
B
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Skilled labor commanded a higher wage than unskilled labor in both the U.S. and Europe between 1789 and 1860 . However, skilled wages in the U.S. were higher, on average. A higher land to labor ratio in the U.S
can explain the higher wage rates of skilled workers in the U.S. Indicate whether the statement is true or false
If market interest rates increase, the prices of existing bonds will
A) decrease. B) not change. C) increase. D) decrease if Real GDP decreases and increase if Real GDP increases.
What would opening trade between two nations do?
What will be an ideal response?
If income is $20 billion, the price level is 5, and the stock of money is $10 billion, what is the income velocity of money?
A. 0.4 B. 2.5 C. 4 D. 10