How feasible would it have been for the U.S. president and/or Congress to use fiscal measures to combat the 1990–1991 recession?
What will be an ideal response?
Since the government already faced record high deficits and a large national debt, it would have been very difficult to use fiscal measures to prevent or alleviate that recession. Because most fiscal measures would add substantially to the existing deficit and national debt, they would meet resistance from many sources. And Congress had passed a deficit reduction package in November 1990. This means that the government would have had to rely heavily on monetary measures to prevent or alleviate a recession.
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The Reagan administration's policies were aimed at managing aggregate demand
a. True b. False Indicate whether the statement is true or false
The standard interpretation of the Ricardian model is that differences in factor endowments between countries account for differences in labor productivity
a. True b. False Indicate whether the statement is true or false
A. A recession? occurs, and? government-funded unemployment compensation is paid to? laid-off workers. This is an example of
b. Congress votes to fund a new jobs program designed to put unemployed workers to work. This is an example of c. The Federal Reserve decides to reduce the quantity of money in circulation in an effort to slow inflation. This is an example of d. Under powers authorized by an act of? Congress, the president decides to authorize an emergency release of funds for spending programs intended head off economic crises. This is an example of
Automated teller machines provided by financial intermediaries are an example of:
A. diseconomies of scale. B. the ability of financial intermediaries to provide liquidity. C. high transactions costs associated with financial intermediaries. D. the ability of financial intermediaries to earn profits by raising transaction costs above the norm.