To close a recessionary gap, Keynesian theory calls for
A. expansionary fiscal policy.
B. contractionary fiscal policy.
C. international trade.
D. none of these.
Answer: A
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Refer to Table 13-2. What is likely to happen to the product's price in the long run?
A) It will fall. B) It will remain constant. C) It will increase. D) This cannot be determined without information on its long-run demand curve.
The global financial crisis that began in 2008 was a great illustration of how interdependent national economies are
Indicate whether the statement is true or false
Which of the following is not a reason to expect the slope of a consumer's indifference curve for current and future consumption to be greater than 1 with an endowment along the 45° line?
a. People are naturally impatient. b. One is never sure if he will be alive in the future. c. A unit consumed today offers memories of consumption into the future. d. A decline in interest rates.
Changes in exchange rates are usually expressed in percentage terms.The percentage rate of appreciation for one currency will be close to the rate of depreciation for the other nation whenever:
a. the change in the rate is very small. b. the exchange rates are very different in quantitative terms. c. the change in the rate is very large. d. one exchange rate is 50% more than the other one at the time of the change