The actual government budget surplus ________ be used to determine the effectiveness of discretionary fiscal policy actions because ________
A) cannot; it excludes non-discretionary spending changes
B) can; it includes non-discretionary spending changes
C) cannot; it includes non-discretionary spending changes
D) can; it excludes automatic stabilization expenditures
C
You might also like to view...
The desire to smooth consumption is reflected in
A) the consumer's budget constraint. B) the curvature in a consumer's indifference curves. C) choice between present and future. D) the production possibilities frontier.
A good proxy for the flow of consumption services would be
A) aggregate consumption. B) consumption of services and consumption of durables. C) consumption of durables and consumption of nondurables. D) consumption of nondurables and consumption of services.
A perfect price discriminator receives a price equal to marginal revenue for each unit
What will be an ideal response?
The actual money multiplier is smaller than the simple money multiplier because: a. the actual multiplier affects M2 rather than M1
b. cash withdrawals reduce the amount banks can lend out. c. the actual multiplier affects the amount of excess reserves each bank holds. d. the size of the simple multiplier depends on the volume of deposits unlike the actual multiplier. e. the actual multiplier uses a different measure of reserve requirements.