In the event of a recession, which of the following is the most likely policy stance of those who advocate a passive approach to economic policy?
a. Cutting taxes
b. Increasing government spending
c. Reducing interest rates
d. Increasing the money supply
e. Doing nothing
e
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If net capital flows were -28 billion and domestic investment was 17 billion, then the amount of domestic savings was
A) -11 billion. B) 45 billion. C) 11 billion. D) -9 billion.
Under laissez faire, output selection is determined by
a. consumer preferences. b. production costs. c. firms' desires to make profits. d. All of the above are correct.
Under a balanced budget policy, a sharp rise in GDP will cause
a. no serious budget changes. b. a tax cut or an increase in expenditures. c. a tax increase or expenditure cut. d. tax receipts to exceed government expenditures.
One reason to expect higher growth under planned socialism
a. material balance planning b. the dictator's use of coercion c. growth based pricing policy d. the dictator worries about consumption e. the dictator can set a high investment rate