The 2008-2009 deficit stimulus spending by the federal government is an example of expansionary sound finance.
Answer the following statement true (T) or false (F)
False
Sound finance is the view that the government budget should always be balanced, except in wartime.
You might also like to view...
The structural deficit is the deficit that
a. is composed by of nondiscretionary spending by the federal government. b. results from the economy being below its natural rate of output. c. exists when output is at its natural rate of output. d. results from temporary tax cuts. e. all of the above
Economic choice and competitive behavior are the result of
a. scarcity. b. poverty. c. public ownership of resources. d. private ownership of resources.
In general, personal income taxes
A) rise automatically during a recession. B) rise automatically during an expansion. C) rise automatically during a contraction. D) are decreased during a recession through legislative actions of Congress.
A constant-cost industry
A. is one in which an increase in demand is matched by a proportional increases in long-run supply. B. has a downward sloping long-run supply curve. C. generates increasing profits whenever demand increases because the new long-run equilibrium price is above the old price even though average costs have not changed. D. has a horizontal long-run supply curve.