Which of the following would be most likely to induce Congress and the president to conduct expansionary fiscal policy? A significant
A) decrease in investment spending.
B) decrease in oil prices.
C) increase in consumption spending.
D) increase in net exports.
Answer: A
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Some factors that allow firms to make economic profits are beyond its control. All but one of the following is an uncontrollable factor. Which factor is controllable?
A) chance events B) consumer tastes C) product differentiation D) input prices
If a good is inferior, then the income elasticity of demand for that good is
a. positive and greater than 1 b. negative c. positive and less than 1 d. 0 e. perfectly elastic
What do you mean by the term 'free market'? a. It refers to the process whereby buyers and sellers interact or trade under government regulation
b. It refers to the process whereby buyers and sellers voluntarily interact or trade without any interference or restrictions. c. It refers to a market where buyers and sellers pay for goods and services in kind and not in cash. d. It refers to a market where assets are traded after they have been sold in the primary market. e. It refers to a market where the demand for the product being traded is not affected by a change in the price of the product.
According to Keynes, the effect on planned real investment spending resulting from the interest-rate impact of a decrease in the money supply
A. impacts the economy by increasing the deficit. B. impacts the economy by reducing the value of the U.S. dollar. C. impacts the economy through the multiplier. D. does not impact the economy.