Need-based spending ________ during an expansion and ________ during a recession, which leads to larger budget deficits during the ________ phase of the business cycle
A) increases; decreases; recession
B) decreases; increases; expansion
C) decreases; increases; recession
D) decreases; decreases; expansion
E) increases; decreases; expansion
C
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Alternative proposals to change the current system of exchange rates include
a. a new explicit system of fixed exchange rates. b. adjustable target zones for exchange rates. c. a dirty float rate system. d. Both a and b e. Both b and c
Buyers of a product will bear the larger part of the tax burden, and sellers will bear a smaller part of the tax burden, when the
a. tax is placed on the sellers of the product. b. tax is placed on the buyers of the product. c. supply of the product is more elastic than the demand for the product. d. demand for the product is more elastic than the supply of the product.
The gold standard system was:
A) a floating exchange rate system. B) a fixed exchange rate system, in which the country's currency was fixed relative to a pound of gold. C) a fixed exchange rate system, in which the country's currency was fixed relative to an ounce of gold. D) only used by the United States.
Refer to the above figure. The rightward shift of the curve indicates
A. an increase in quantity demanded. B. a decrease in demand. C. an increase in demand. D. a decrease in quantity demanded.