One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money.
B. by increasing government spending.
C. by setting price ceilings on most goods so people can afford them.
D. None of these will help an economy in recession.
Answer: B
You might also like to view...
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
The Coase theorem is reliant on ______ property rights.
a. club b. public c. undefined d. well-defined
The determination of prices in the market for automobiles is primarily a concern of: a. positive economics
b. normative economics. c. microeconomics. d. macroeconomics.
If equilibrium real GDP rises from $4 trillion to $6 trillion when government purchases increase by $1 trillion, the MPC must be
a. 0.8 b. 0.4 c. 0.5 d. 0.2 e. 2