An economist who favors smaller government would recommend:
A. increases in government spending during recession and tax increases during inflation.
B. tax increases during recession and tax cuts during inflation.
C. tax cuts during recession and reductions in government spending during inflation.
D. tax cuts during recession and tax increases during inflation.
Answer: C
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Some college students have claimed that because their incomes will be higher as a result of attending college, there is no opportunity cost of attending college. Do you agree? Explain
The income of Lebron James, for example, is determined by
a. the position of the demand curve. b. the number of athletes in the NBA. c. his supply curve for labor services. d. marginal rent.
The MC curve intersects the AVC curve at the ____________ of the AVC curve.
Fill in the blank(s) with the appropriate word(s).
Suppose the Fed conducts an open market sale of $50 million in government securities. If the required reserve ratio is 20%, what is the maximum change in the money supply? Assume that banks try not to hold excess reserves and there is no currency withdrawal from the banking system.
A) maximum increase in money supply = $250 million B) maximum decrease in money supply = $250 million C) maximum increase in money supply = $50 million D) maximum decrease in money supply = $50 million