Which of the following about fiscal policy is true?

a. Modern forecasting methods make it relatively easy to time fiscal policy changes in a manner that will help stabilize the economy.
b. Legislative action is necessary if automatic stabilizers are going to smooth the ups and downs of the business cycle.
c. Proper timing of changes in discretionary fiscal policy is both crucially important and difficult to achieve.
d. Both the crowding-out and new classical theories indicate that expansionary fiscal policy will exert a powerful impact on aggregate demand.


C

Economics

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A bank can decrease the degree of moral hazard if it

a. Monitors the borrowers behaviors b. Placing covenants on the loan c. Both of the above d. None of the above

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An increasing cost industry is one in which per unit cost increases as output expands in the long run

a. True b. False

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The interest rate will _____ and the quantity of loanable funds invested will _____ when the government decreases the budget deficit

Fill in the blank(s) with correct word

Economics