Which of the following actions could be undertaken if the government wants to close a recessionary gap?
A) Increase taxes and reduce government spending.
B) Reduce taxes and increase government spending.
C) Increase taxes and increase government spending.
D) Reduce taxes and reduce government spending.
B
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Each of the following is a challenge that society's would face in trying to use the second welfare theorem to achieve equity without sacrificing efficiency EXCEPT:
A. endowments aren't always easily observable. B. wealth isn't an endowment. C. lump-sum transfers distort choices. D. transfers based on wealth aren't lump-sum transfers.
We know how many dollars banks create using the:
A. money multiplier. B. federal funds. C. demand deposits. D. interest rate.
In response to the financial crisis of 2007-2009, the Federal Reserve
A. raised the fed funds rate from 2.0 percent to 5.25 percent. B. raised the discount rate from 2.0 percent to 5.25 percent. C. cut the fed funds rate from 5.25 percent to 2.0 percent. D. cut the discount rate from 5.25 percent to 2.0 percent.
All of the following are major sources for financing public education EXCEPT
A. income taxes. B. government fees. C. property taxes. D. sales taxes.