Using sharp increases or decreases in taxes rather than deficits is a better way to prevent distortions in an economy
Indicate whether the statement is true or false
FALSE
You might also like to view...
The relationship between the quantity of money balances demanded and the interest rate is
A) contractionary monetary policy. B) determined by open market operations. C) negative. D) the reserve requirements.
Market economies are likely to suffer from recessions and inflation because the government plans all economic activity
a. True b. False Indicate whether the statement is true or false
Which of the following statements is true?
(a) A barter system requires a double coincidence of wants; (b) Holding cash is a good way of preserving the value of assets; (c) Commercial banks must cover their deposits fully with cash reserves; (d) A fall in reserve requirements forces banks to curtail credit.
Objective
What will be an ideal response?