By using restrictive fiscal policy during the Great Depression, the government improved the economic situation.
Answer the following statement true (T) or false (F)
False
From 1931 to 1933, the structural deficit decreased from $4.5 billion to a $2 billion surplus. This fiscal restraint reduced aggregate demand and deepened the Great Depression.
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The difference between the market price of an acre of land and its supply price (including transportation) is
a. land rent b. zero, by definition c. negative d. the price of land e. infinite when the supply of land is fixed
Implementing a regional free-trade agreement may have an effect in which, due to reduced tariffs, a nation in the agreement begins to import a product it had previously produced itself. This effect is called:
a. trade creation. b. trade diversion. c. reciprocal trade agreements. d. the employment effect of FTAs.
Which statement is true?
A. Most economists support rent control laws. B. Usury laws and rent control are price ceilings. C. Usury laws have never had any effect because they are set well above interest rates. D. None of these choices are true.
The Coase theorem will hold only if:
A. the transactions costs are clearly identified and assigned. B. the contracts are enforceable. C. government will provide free mediation. D. None of these statements is true.