If government increases the size of its cyclically adjusted surplus, we can:
A. assume that government is causing interest rates to rise.
B. not determine government's impact on the economy without also knowing the status of the
actual budget.
C. assume that government is having a contractionary effect on the economy.
D. assume that government is having an expansionary effect on the economy.
C. assume that government is having a contractionary effect on the economy.
You might also like to view...
In the 2000s, low savings rates are attributed to
A) rapid economic growth. B) stock market boom. C) declining interest rates and increased refinancing of the mortgages. D) inefficient monetary policy.
The one central bank president that always has a seat on the Federal Open Market Committee is located in:
A. New York City. B. Chicago. C. Boston. D. San Francisco.
Why is it necessary to understand fluctuations in investment if we want to understand the fluctuations in the business cycle?
What will be an ideal response?
Explain the circumstances under which some component of labor income is economic rent.
What will be an ideal response?