E. Carey Brown, an MIT economist, studied government deficits during the Great Depression and found that even though actual deficits were large, the structural deficit changed very little. Which of the following statements is consistent with this finding?
a. Fiscal policy did not work during the Depression.
b. Fiscal policy made the Depression worse.
c. Fiscal policy was not tried during the Depression.
d. Fiscal policy improved the economy during the Depression.
c
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As means of payment currency, credit cards, and debit cards differ according to
A) whether they pay interest. B) whose liability they represent. C) transactions costs. D) all of the above.
A market supply curve is determined by
a. vertically summing individual supply curves. b. horizontally summing individual supply curves. c. finding the average quantity supplied by sellers at each possible price. d. finding the average price at which sellers are willing and able to sell a particular quantity of the good.
A quality men's suit in the U.S. costs $400 . The same suit costs 300 British pounds in the U.K. The nominal exchange rate is .60 pounds per dollar. A. Find the real exchange rate. Show your work. B. In terms of dollars where is the suit cheaper?
The imposition of a unit excise tax on red wine will
A) lower equilibrium price and quantity in the market. B) increase equilibrium quantity and price in the market. C) lower equilibrium quantity and raise equilibrium price in the market. D) raise equilibrium quantity and lower equilibrium price in the market.