If Congress passes legislation to cut taxes and increase government spending to counter the effects of a severe recession, this would be an example of a(n):
a. Contractionary fiscal policy
b. Expansionary fiscal policy
c. Standardized budget
d. Budget surplus
b. Expansionary fiscal policy
You might also like to view...
________, in economics, refers to a preference for equal outcomes within the target population
A) Randomness B) Rationalism C) Fairness D) Liberalism
The ________ relation indicates that the interest differential between investments in two currencies will equal the forward premium or discount between the currencies
A) Fisher equation B) interest rate parity C) purchasing power parity D) term structure of interest rates
A supply of foreign exchange occurs in the United States when
a. a U.S. citizen wants sells stock on a European stock exchange. b. the United States exports steel to Japan. c. United States citizens travel abroad. d. All of the above
Your neighbor has just planted some fragrant flowers. The wonderful scent drifts into your room and makes you happy
A) This scent is an internal cost to you. B) This cannot be an externality since you are enjoying the scent. C) This is an externality since you get a benefit from your neighbor's flowers. D) The social cost of this activity is entirely borne by you neighbor.