The 2009 fiscal stimulus package was passed ________
A) to prevent the real interest rate from rising
B) to shift the IS curve to the left
C) to raise aggregate output at any interest rate
D) all of the above
E) none of the above
C
You might also like to view...
Pizza at Home is a frozen pizza company that supplies several large grocery store chains. The managers of Pizza at Home are currently negotiating a four year contract with Saucy Pizza, a manufacturer of pizza sauce. Saucy Pizza will supply a specified quantity of canned tomato sauce to Pizza at Home over a four year period; however; Pizza at Home can ends its contract with Saucy Pizza at the end
of the first, second, or third years if Saucy Pizza does not supply quality tomato sauce. What can the manager of Pizza at Home do to avoid the end-game problem? A) Inform Saucy Pizza that Pizza at Home will nominate them for a supplier industry award if they provide quality tomato sauce in all four years. B) Pay Saucy Pizza in installments at the end of the first, second, and third years. C) Pay Saucy Pizza in equal installments at the end of each of the four years. D) Pay Saucy Pizza in full at the beginning of the first year.
Trade between nations A and B:
a. leaves the production possibilities of nation A unchanged. b. leaves the production possibilities of nation B unchanged. c. increases the consumption possibilities of both nations. d. All of these are true.
Social Security payments:
A. cause concern for retirees, due to the increase in life expectancies. B. continue to cause the elderly to lose income over time, since payments are not adjusted for inflation. C. hold their real value because they are adjusted for inflation. D. are the biggest drain on the retirees' budget each year.
When individuals take externalities into account when making decisions, economists say they are:
a. internalizing the externality. b. eliminate the externality. c. subsidize a positive externality. d. subsidize a technology spillover.