Discuss the political pressures associated with fiscal policy
Please provide the best answer for the statement.
Fiscal policy is subject to political pressures. During times of recessions politicians are often pressured to increase spending or decrease taxes to stimulate the economy. The political pressure often leads to politicians targeting spending and tax cuts toward special interest groups, rather than the economy as a whole or the industries hurt the most.
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Refer to Figure 13.1. If the voting method used to select a location for the recreation center is the plurality-rule method, the number of voters who will vote against the winning city is
A) 135. B) 195. C) 255. D) 405.
Which of the following examples reflects the liquidity trap?
a. After a bank receives additional reserves, it collects interest on those funds rather than loaning them. b. After receiving additional reserves, a bank invests large sums in a bull market. c. After a bank receives additional reserves, the number of loans it makes increases significantly. d. After receiving additional reserves, a bank uses half of them for investments.
If supply is perfectly elastic, the price elasticity of supply is equal to:
A. 1. B. 0. C. infinity. D. a positive number between 0 and infinity.