The crowding-out effect of an expansionary fiscal policy is likely to be fully or partially offset during a recession.
Answer the following statement true (T) or false (F)
True
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The degree to which an asset can be acquired or disposed of without much loss of nominal value or transaction costs is known as
A) fiducia. B) credit. C) fiat money. D) liquidity.
National League pitchers partake in some batting practice (typically, bunting). Why don't American League pitchers practice batting?
A) Practice can't be expected to improve their terribly poor batting skills. B) They have little incentive, given the designated hitter rule. C) They don't believe the slogan "There is no 'I' in 'Team'." D) They ignore the rules of the game.
National health care programs are not as effective as they could be because:
A. patients are not receptive to utilization of modern medicine in most nations. B. many doctors in clinics do not have sufficient knowledge to properly diagnose patients. C. traditional Western medicine is largely untrusted in most parts of the developing world. D. health care providers tend to have a high absentee rate.
Opponents of government intervention in the economy argue that government's attempts to correct informational problems:
A. will make market transactions much more efficient. B. are not necessary since an efficiently operating market system ensures that adequate information will be provided. C. are justified in most cases though politically difficult to implement. D. often create greater problems, such as FDA restrictions on experimental drugs for AIDS, which could save lives.