Which of the following government actions would be considered expansionary fiscal policy?
A. Balancing the federal budget
B. Reducing tariffs on imports
C. Passing a personal tax credit for the purchase of a new automobile
D. Asking the Federal Reserve to reduce interest rates
Answer: C
You might also like to view...
If demand falls, what happens to equilibrium price and quantity?
What will be an ideal response?
If the short-run aggregate supply curve is positively sloped and the Fed increases the money supply, aggregate demand _____
Fill in the blank(s) with the appropriate word(s).
If the expected inflation rate is unchanged, a rise in the natural rate of unemployment would
A. not shift either the short-run or long-run Phillips curves. B. shift both the short-run and long-run Phillips curves to the left. C. shift both the short-run and long-run Phillips curves to the right. D. shift the short-run Phillips curve to the left and shift the long-run Phillips curve to the right.
The North American Free Trade Agreement and the European Union are examples of
A) defense treaties. B) regional trade blocs. C) labor agreements designed only for industrialized countries. D) agriculturally based economies.