The goal of fiscal policy is to ________, and typically focuses on ________
A) balance the federal budget; tax rates and tax revenues
B) stabilize the supply of money in the economy; price stability
C) reduce the severity of economic fluctuations; employment and production
D) eliminate balance of payments deficits or surpluses; exchange rate stability
C
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The United States issues a $10,000 debt forgiveness to Argentina. How is this accounted for in the balance of payments?
A) financial account, U.S. asset import B) current account, Argentina transfer payment C) current account, U.S. service export D) financial account, U.S. asset export E) current account, Argentina good import
An increase in the real interest rate outside of the United States will cause the dollar to ________ relative to other currencies and ________ net exports and real GDP
A) appreciate; increase B) appreciate; reduce C) depreciate; increase D) depreciate; reduce
Product differentiation complicates the study of oligopolies because such markets may not:
a. be efficient. b. have prices equal to marginal cost. c. have free entry and exit. d. obey the law of one price.
Does the raising of reserve requirements automatically decrease the money supply? Why or why not?
What will be an ideal response?