An example of discretionary fiscal policy would be
A. an interest rate increase implemented to control inflationary pressures.
B. the operation of the welfare state.
C. the operation of the progressive federal income tax.
D. a tax increase adopted to control inflationary pressures.
Answer: D
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What are the costs of capital mobility?
What will be an ideal response?
The term structure of interest rates
A) represents the relationship among the interest rates on bonds that are otherwise similar but that have different maturities. B) reflects differing tax treatment received by different instruments. C) always results in an upward-sloping yield curve. D) usually results in a downward-sloping yield curve.
Countries with low levels of GDP per capita usually also have:
A. mandatory military service. B. highly developed infrastructures. C. low levels of schooling. D. high levels of schooling.
Nominal GDP can change
A) only if prices change. B) only if the quantities of goods and services change. C) only if prices increase. D) if either prices or the quantities of goods and services change. E) only if prices and the quantities of the goods and services change.