Countercyclical discretionary fiscal policy calls for:
A. surpluses during both recessions and periods of demand-pull inflation.
B. deficits during recessions and surpluses during periods of demand-pull inflation.
C. deficits during both recessions and periods of demand-pull inflation.
D. surpluses during recessions and deficits during periods of demand-pull inflation.
Answer: B
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Indicate whether the statement is true or false
High interest rates make a firm's long-term investment in new capital
a. riskless. b. less attractive. c. more attractive. d. no more attractive than short-term investment.
In the perfectly competitive market, all firms in the market are assumed to be producing:
A. identical products. B. differentiated products. C. products that are heavily advertised. D. complementary products.
Which of the following will shift the short-run industry supply curve of a perfectly competitive industry?
A. an increase in consumer income B. an increase in demand for the product C. an increase in the price of the product D. a decrease in the price of an input