Monetary policy includes changes in government spending
a. True
b. False
Indicate whether the statement is true or false
False
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A one-unit increase in government expenditures should, according to the model, increase GDP by
A) 0. B) between zero and one unit. C) one unit. D) more than one unit.
The monetarists would expect a tax cut to have a strong effect on output only if the spending increase was
a. financed by a sale of bonds. b. financed by a cut in government spending. c. financed by an increase in the money stock. d. accompanied by a reduction in the deficit.
A cereal producer finds that when Steve McNair, the quarterback for the Tennessee Titans, endorses its product, its annual income increases from $1 million to $3 million. If the interest rate is 10 percent, the present value of Steve's name is
a. $.2 million b. $3 million c. $10 million d. $20 million e. infinite
Which statement is true?
A. Welfare payments are set by the federal government and are the same for all states. B. Only the industrial states of the northeast, Midwest, and the far west have welfare programs. C. Most people receiving welfare benefits are black. D. Each state sets its own welfare payments.