Activists believe that
A) monetary policy should not be used to smooth out the business cycle.
B) fiscal policy should not be used to smooth out the business cycle.
C) the frequent use of fiscal or monetary policy is called for to smooth out the business cycle.
D) rules should be established for the conduct of both monetary and fiscal policy.
C
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The federal government relies on ________ to limit inequality
A) regressive taxes B) proportional taxes C) progressive taxes D) marginal taxes
The rate of interest that the Fed charges banks on loans is called the reserve rate
a. True b. False Indicate whether the statement is true or false
Which of these statements describes inflation? a. It refers to the temporary rise and fall in the price of a particular good in a market. b. It refers to a one-time shift in the equilibrium price of a good
c. It refers to an increase in the demand for a particular good. d. It refers to an ongoing increase in prices from year to year.
At the end of 2012, the government had a debt of about $11.3 trillion. If during 2013 real GDP rose 2% and inflation was 2.2%, what is the largest deficit the government could have run without raising the debt-to-GDP ratio?
a. about $226.0 billion b. about $248.6 billion c. about $474.6 billion d. about $561.8 billion