Expansionary fiscal policy falls short of its goal. Some economists claim it is due to indirect crowding out. What evidence would be consistent with this claim?
A) The interest rate increased. B) The price level decreased.
C) Saving decreased. D) An increase in consumer spending occurred.
A
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A government fulfills a protective function when it
(a) gives cash payments to the poor. (b) provides funds for flood control projects and builds highways. (c) prevents illegal seizure of private property. (d) redistributes income.
The short-run equilibrium price level and real GDP is derived where the short-run aggregate supply (SRAS) curve intersects the long-run aggregate supply (LRAS) curve
Indicate whether the statement is true or false
Income inequality is
A. Often greatest in the poorest countries. B. An issue because households in the lowest quintile receive more than their share of income. C. Often greatest in the richest countries. D. Not an issue in the United States because of the redistribution of income through the federal tax system.
In order to reduce the undesirable effects of moral hazard, an insurance company can:
A. reject the renewal of policies of those people with really bad records. B. classify clients into different types according to their history. C. introduce a deductible. D. All of the statements associated with this question are correct.