Market failures may be corrected through government intervention.
Answer the following statement true (T) or false (F)
True
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Identify the four types of government spending that the Obama administration’s 2009 fiscal policy focused on, and briefly explain the reason for each one.
What will be an ideal response?
Deflation is a situation in which the:
A. prices of most goods and services are rising over time. B. quantity of goods and services produced is increasing over time. C. prices of most goods and services are falling over time. D. quantity of goods and services produced is decreasing over time.
The federal budget exhibited a $128.7 billion surplus in 2001 but moved to a deficit of $157.8 billion in 2002
Some argued the deficit was opened up because of the Bush 2001 tax cuts, but others argued that the deficit grew because of the recession suffered in 2001. Evaluate the validity of the second argument.
Everything else held constant, when households save less, wealth and the demand for bonds ________ and the bond demand curve shifts ________
A) increase; right B) increase; left C) decrease; right D) decrease; left