Expectations theory tells us that what people think can impact the economy
Indicate whether the statement is true or false
True
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What are the basic arguments of the classical growth theory?
What will be an ideal response?
Which of the following effects results from the change in the interest rate created by an increase in government spending?
a. the investment accelerator and crowding out b. the investment accelerator but not crowding out c. crowding out but not the investment accelerator d. neither crowding out nor the investment accelerator
A tax where the percentage of income paid in taxes is the same regardless of the size of the income is a:
A. proportional tax. B. regressive tax. C. progressive tax. D. sales tax.
The most common type of macroeconomic imbalance is overly expansionary fiscal policies that create large government budget deficits, often financed by a high growth rate of the money supply
Indicate whether the statement is true or false