International capital flows in an open economy have the effect of
A. increasing the power of fiscal policy.
B. reducing the power of fiscal policy.
C. reducing the power of fiscal policy in an expansion, and increasing it in a contraction.
D. increasing the power of fiscal policy in an expansion, and reducing it in a contraction.
Answer: B
You might also like to view...
The statement, "My Hello Kitty Limited Edition Vespa scooter is worth $5,500" represents money's function as a
A) medium of exchange. B) store of value. C) standard of value. D) commodity.
Which of the following statements is FALSE?
A) Economic goods are available in desired quantities at a zero price. B) A good is anything that gives satisfaction or happiness to individuals. C) Services are intangible goods such as dry cleaning, hospital care, and restaurant meal preparation. D) Wants are unlimited and include all material and nonmaterial desires.
Which of the following is an example of a contractionary fiscal policy?
A. the federal government decreasing the amount of money spent on public health programs B. the Fed buying government securities in the open market C. the federal government reducing pollution standards to allow firms to produce more output D. the federal government decreasing the marginal tax rate on incomes below $200,000
A political problem with discretionary fiscal policy is the
A. business cycle. B. split control of the legislative and judicial branches of government. C. Federal Reserve. D. political business cycle.