The government is pursuing an expansionary fiscal policy if it
a. decreases government spending and increases taxes.
b. increases government spending or increases taxes.
c. decreases government spending or reduces taxes.
d. increases government spending and/or reduces taxes.
D
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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
Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not. The club purchased the sets. Which method of allocation best describes the choice to purchase the sets?
A) force B) sharing equally C) command D) majority rule E) lottery
The top policy goal for Paul Volcker when he became chairman of the Federal Reserve's Board of Governors in 1979 was
A) increasing regulation of commercial banks. B) increasing employment. C) a low current account deficit. D) fighting inflation. E) increasing economic growth.
We can measure the profits earned by a firm in a competitive industry as
a. (P - ATC) × Q. b. (P - MC) × Q. c. MR × MC. d. (MC - ATC) × Q.