Supply-side economists argue that less government spending:
a. will contract the productive side of the economy.
b. will result in more crowding out.
c. causes higher rates of unemployment and inflation.
d. would cause interest rates to increase dramatically.
e. would make more investment capital available at lower rates of interest to the private sector.
e
You might also like to view...
________ are guarantees of quality issued directly by either the manufacturer or the seller
A) Patents B) Trademarks C) Warranties D) Copyrights
If the supply for a good is elastic, that means that when price increases, the
A) supply will increase. B) quantity supplied will decrease. C) quantity supplied will increase by a smaller percentage than the price increased. D) quantity supplied will increase by a greater percentage than the price increased.
If people begin to hold more cash, the money multiplier process will
a. increase in intensity. b. remain the same. c. decrease in actual size. d. cause larger amounts of excess reserves.
Which of the following actions would the Federal Reserve System take to expand monetary policy:
A. Raise the Federal Discount Rate B. Buy securities on the open market C. Increase Reserve Requirements D. Open additional financial institutions