When the federal budget is used as a tool for economic stabilization, the ideal goal is to
a. balance the budget over the entire business cycle.
b. balance the budget each year.
c. balance the budget during expansions.
d. run a surplus during contractions.
a. balance the budget over the entire business cycle.
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A decrease in the level of real GDP in the economy leads to
A) a leftward shift in the demand for money curve. B) a rightward shift in the demand for money curve. C) a leftward movement along the demand for money curve. D) a rightward movement along the demand for money curve.
In the open market economy, contractionary fiscal policy would ______the demand for money and interest rates would_______ and the dollar________ and net exports_______
a. increase; rise; appreciates; decrease. b. increase; fall; depreciates; decrease. c. decrease; fall; depreciates; increase. d. decrease; fall; appreciates; increase.
The more firms an oligopoly has,
a. the more likely it is to earn monopoly profits. b. the higher the price of the product. c. the farther the equilibrium quantity will be from the socially efficient quantity. d. the more likely the firms will charge a price close to the perfectly competitive price.
In the balance of payments, all of the following are deficit items EXCEPT
A) imports of merchandise. B) funds placed in foreign depository institutions. C) sales of dollars to foreigners. D) tourism expenditures abroad.