An example of a fiscal stimulus is
A) increasing the quantity of money.
B) lowering the interest rate.
C) decreasing government expenditure.
D) decreasing needs-tested spending.
E) cutting taxes.
E
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In a non-cooperative, imperfect information, simultaneous-choice, one-period game, a Nash equilibrium
A) will never exist. B) will always include dominant strategies. C) will always result in both players taking the same action. D) may not maximize the sum of the firms' profits.
If the marginal rate of substitution is not diminishing, it must mean that tastes violate convexity (assuming that our other assumptions about tastes hold).
Answer the following statement true (T) or false (F)
In perfect competition, the
A) market demand for the good or service is large relative to the minimum efficient scale of a single producer. B) market demand for the good or service is small relative to the minimum efficient scale of a single producer. C) market demand for the good or service can be small relative to the minimum efficient scale of a single producer as long as the goods or services are not identical. D) size of the market demand for the good or service relative to the minimum efficient scale of a single producer does not affect competition.
If real GDP in a closed economy is $40 billion, consumption is $20 billion, and government purchases are $10 billion, what is investment?
A) $10 billion B) $30 billion C) $40 billion D) $70 billion