The goal of expansionary fiscal policy is to:
A. increase the money supply.
B. cool off the economy.
C. reduce interest rates.
D. stimulate the economy.
Ans: D. stimulate the economy.
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For the tragedy of the commons to occur, property rights must be clearly defined and enforced
Indicate whether the statement is true or false
Positive externalities are created by people when they
A) add to the net real income of society. B) are altruistic or concerned for the welfare of others. C) benefit others without intending to do so. D) increase the general welfare. E) promote the happiness of others.
Starting at full employment (RGDPNR), a. expansionary monetary policy can potentially result in increased real output, but only in the short run
b. expansionary monetary policy can potentially result in increased real output in both the short run and long run. c. contractionary monetary policy can potentially result in increased real output, but only in the short run. d. contractionary monetary policy can potentially result in increased real output in both the short run and long run.
A country experiencing a growth rate of 12% per year can go from being one of the poorest to one of the richest in
a. one generation. In the last couple of decades China's growth rate has been higher than 12%. b. one generation. However, in the last couple of decades not even China's growth rate has been this high. c. three generations. In the last couple of decades China's growth rate has been higher than 12%. d. three generations. However, in the last couple of decades not even China's growth rate has been this high.