An appropriate fiscal policy for severe demand-pull inflation is:
A. an increase in government spending.
B. depreciation of the dollar.
C. a reduction in interest rates.
D. a tax rate increase.
D. a tax rate increase
You might also like to view...
If the market clearing price of computer tablets rises from $400 to $600, and the market clearing output increases from 5 million to 7 million units,
A) demand decreased and supply remained unchanged. B) supply increased and demand remained unchanged. C) demand increased and supply remained unchanged. D) supply decreased and demand remained unchanged.
The spread between the interest rates on Baa corporate bonds and U.S. government bonds is very large during the Great Depression years 1930-1933. Explain this difference using the bond supply and demand analysis
What will be an ideal response?
An example of a zero-sum game is
A) exchange. B) a consumer purchasing a used car from a used car dealer. C) the prisoners' dilemma. D) poker.
Quinn's income to spend each month on two normal goods, bowling or eating out, is $100. It costs $10 to bowl for the night, and it costs $20 for Quinn to eat at a restaurant. Quinn currently consumes four nights of bowling and three meals at a restaurant. If the price of bowling increased to $15, the income effect would predict:
A. Quinn would consume more of each good. B. Quinn would consume less bowling and more meals out. C. Quinn would consume less of each good. D. Quinn would consume more bowling and less meals out.