To help reduce the price level, the government could:
A. run budget deficits.
B. decrease taxes.
C. increase government spending.
D. run budget surpluses.
Answer: D
You might also like to view...
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Referring to Figure 19.1, U.S. goods will become cheaper in Mexico if the exchange rate goes from ________ to ________ pesos to the dollar
A) 12; 13 B) 10; 14 C) 12; 11 D) 11; 13
Which of the following is not a benefit to lenders/investors of financial intermediation?
a. Lower transaction costs than the direct market. b. Lower risks than the direct market. c. More diversification than the direct market. d. More convenient than the direct market. e. Higher yield than the direct market.
The real rate of interest measures the ________ of capital investment.
A. opportunity cost B. value of the marginal product C. relative price D. marginal benefit