Which of the following is an example of a discretionary fiscal policy during a recession?
A) A temporary tax cut to boost consumption
B) A decrease in money supply to lower the federal funds rate
C) A decrease in transfer payments to unemployed workers
D) An increase in tax rates to increase revenue
A
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Thomas Malthus's model made the mistake of failing to consider:
A. technological progress. B. inflation. C. comparative advantage. D. scarcity.
Which of the following is included in a nation's current account?
a. Purchases of foreign assets b. Borrowings from abroad c. Foreign purchases of U.S. financial assets d. Investment income receipts e. Purchases of foreign real property
During the Reagan administration, the Laffer curve was used to argue that:
A. the supply-side effects of tax cuts are relatively small.
B. discretionary tax cuts are unwise because they create stagflation.
C. lower income tax rates could increase tax revenues.
D. a "flat tax" would simplify the tax code and stimulate economic growth.
Stock and Watson found that ________ was responsible for about 20-30 % of the reduction in output volatility that occurred in the mid-1980s.
A. reduced shocks to productivity B. better monetary policy C. reduced shocks to food and commodity prices D. better inventory control