The rational expectations school advocates:
a. Monetarism
b. Keynesianism.
c. the use of fiscal policy.
d. the use of monetary policy.
e. a passive approach to policy.
e
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Among the benefits of privatization of state owned enterprises is
(a) increased employment. (b) improved efficiency. (c) reduced pollution. (d) all of the above. (e) none of the above.
If there is currently an inflationary gap, an increase in aggregate demand will make the inflationary gap smaller, but a decrease in aggregate demand would make the inflationary gap larger
a. True b. False Indicate whether the statement is true or false
The external debt can place a continuing burden on the United States by reducing consumption in the United States
Indicate whether the statement is true or false
Why does a tax change affect aggregate demand?
a. A tax change alters saving by an equal amount. b. A tax change alters imports and net exports. c. A tax change alters government spending by an equal amount. d. A tax change alters disposable income and consumption spending.