The modern synthesis view of fiscal policy stresses
a. how easy it is to time fiscal policy changes so they exert a stabilizing influence on the economy.
b. the ineffectiveness of fiscal policy, even during periods of widespread unemployment.
c. the difficulties involved in timing fiscal policy changes so they will exert a stabilizing impact on the economy.
d. that automatic stabilizers do not help smooth fluctuations in the economy.
C
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Since 1970, the U.S. Gini ratio has
A) increased. B) decreased. C) increased and then decreased. D) decreased and then increased.
A price increase will always cause a firm’s revenue to fall because they will sell less of the good.
Answer the following statement true (T) or false (F)
Assume that the demand for film cameras decreases in a competitive market. What will most likely happen to the equilibrium price and quantity of film cameras?
a. Price will decrease; quantity will increase b. Price will decrease; quantity will decrease c. Price will increase; quantity will increase d. Price will increase; quantity will decrease
If the Japanese government enters the foreign exchange market and purchases yen to attain a specific exchange rate with the dollar, the dollar will ________ and the yen will ________.
A. depreciate; depreciate B. depreciate; appreciate C. appreciate; depreciate D. appreciate; appreciate