Policy that tries to influence target variables by changing the tax rates is called
A) fiscal policy.
B) tax rate policy.
C) recession policy.
D) monetary policy.
A
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Which of the following is a way to deter entry?
A) increase costs through legislation that affects only new entrants B) raise switching costs for customers that use your products C) obtain a patent so that others must license your invention D) All of the above.
An increase in the required reserve ratio by the Federal Reserve would:
a. cause M1 to contract. b. cause M1 to expand. c. have no effect on M1 or M2. d. affect only M2, not M1.
Individuals hold precautionary balances in order to
A. Make speculative purchases. B. Take advantage of future changes in bond prices. C. Make anticipated expenditures. D. Pay for emergency purchases.
For an economy starting at full employment real GDP, a decrease in investment results in a(n)
A. decrease in full-employment output. B. inflationary output gap. C. recessionary output gap. D. increase in full-employment output.