If the government were to reduce its spending, it would be enacting:
A. expansionary fiscal policy.
B. a budgetary crisis intervention.
C. expansionary budgetary policy.
D. contractionary fiscal policy.
Answer: D
You might also like to view...
If gross investment for a year was $120 billion and net investment was $65 billion, then in that year the country's capital stock ________.
A. increased by $65 billion B. increased by $55 billion C. decreased by $55 billion D. may have either increased or decreased
According to your authors, which of the following is necessary for real-world markets to clear?
A) Supply and demand curves B) The hard work of expert economists C) A well-managed national economic plan D) "Rules of the game," which allow for competitive bidding on scarce goods E) Nothing more than pure luck
The holdout problem occurs when _____
a. unanimity rule is required for any Congressional action b. free riding is prevalent c. individuals drafted into the military refuse to report d. any individual has the power to prevent collective action
The triple-A corporate bond rate is the rate that ________ on bonds that they issue.
A. commercial banks pay B. the government pays C. the Fed pays D. the least risky firms pay