According to the Keynesian view, which of the following would most likely stimulate real output if an economy were in a recession?
a. a decrease in tax rates
b. an increase in tax rates
c. a reduction in government expenditures
d. a budget surplus
A
You might also like to view...
If the world real interest rate were 6% and the domestic real interest rate in Estonia was 4%, borrowers in Estonia would borrow at the rate of ________ and lenders in Estonia would lend at the rate of ________
A) 6%; 6% B) 6%; 4% C) 4%; 6% D) 4%; 4%
The price elasticity of demand for insulin is:
A. likely to be perfectly inelastic over some range of prices. B. perfectly elastic. C. low relative to the supply. D. a large portion of someone's income.
To determine whether an investment makes sense, a business will compute the net present value, and if the result is
A. positive, they will make the investment. B. positive, they will not make the investment unless the interest rate rises. C. positive, they will not make the investment regardless of the change in interest rates. D. negative, they will make the investment.
Some good did come from the internet bubble of the late 1990s. One good thing was that:
A. people learned they should not invest in dotcom companies. B. the theory of efficient markets doesn't always hold and consistently better-than-market returns are achievable. C. start-up companies found they could bypass venture capitalists and raise funds directly from the capital markets. D. stock market bubbles do not have to result in an inefficient allocation of resources.