If firms were faced with greater uncertainty because of concern that oil prices might rise, they might decrease expenditures on capital. In response to this change, someone who advocated "lean against the wind" policies might advocate
a. decreasing the money supply.
b. increasing taxes.
c. increasing government expenditures.
d. All of the above
c
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The peak phase of the business cycle represents
A) a temporary maximum output level of Gross Domestic Product (GDP). B) an increase in foreign investment. C) a labor surplus. D) falling prices.
When U.S. national saving rises, domestic investment also necessarily rises
a. True b. False Indicate whether the statement is true or false
Economists believe that individuals:
A. have varying tastes for taking on financial risks, but are risk-averse in general. B. have the same tastes for taking on financial risks, and are risk-seekers in general. C. have varying tastes for taking on financial risks, but are risk-seekers in general. D. have the same tastes for taking on financial risks, and are risk-averse in general.
Which of the following items would be least prudent to purchase on credit
A) a college education B) a vacation C) a house D) an automobile