Supporters of supply-side economics claim that Reagan's tax policies were quite successful in stimulating the economy because
A. inflation rates fell sharply from the high rates of 1980 and 1981.
B. throughout most of the 1980s, federal receipts continued to rise even though tax rates had been cut.
C. almost immediately after the tax cuts, the economy expanded and the recession of 1980-1982 came to an end.
D. all of the above.
Answer: D
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Which of the following is not a category of consumption spending in the national income accounts?
A) Consumer durables B) Nondurable goods C) Services D) Housing purchases
A Certificate of Deposit would be counted in which measure of money?
A. M1 B. M2 C. Hard money D. It would be counted in both M1 and M2
Which of the following is most important for the achievement of higher income levels and living standards?
a. production of additional goods and services that people value highly relative to the cost of their production b. increases in government spending that create jobs c. restriction of imports that expand employment in the protected industries d. an increase in total employment
The maximum change in the money supply due to an initial change in the excess reserves banks hold is called the:
A. fractional reserve banking system. B. money multiplier. C. required reserve ratio. D. open market operations.