Supply-side economics is based on the theory that:
A. budget deficits will stimulate demand, output, and employment.
B. budget deficits will lead to higher interest rates, which will weaken their expansionary impact.
C. higher tax rates will increase tax revenues.
D. increases in aggregate supply lower the price level.
Answer: D
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A baker can produce two products: cupcakes and pies. The table below is the baker's production possibilities schedule:Production Possibilities ScheduleProductABCDEFCupcakes01220365681Pies1086420Which of the following output-combinations is unattainable?
A. 2 pies and 48 cupcakes. B. 3 pies and 56 cupcakes C. 6 pies and 10 cupcakes D. 9 pies and 10 cupcakes
Critically evaluate the following statement: "People in developing countries are not poor because they have large families. Rather, they have large families because they are poor."
What will be an ideal response?
In general, the demand for the product of a monopolistic competitor is
A) unitary elastic. B) relatively inelastic. C) relatively elastic. D) perfectly elastic.
Keynes called the money people hold in order to buy bonds, stocks, or other nonmoney financial assets the:
a. transactions demand for holding money. b. precautionary demand for holding money. c. speculative demand for holding money. d. unit of account demand for holding money.