Contractionary fiscal policy is enacted when the overall effect of decisions about taxation and spending is to:
A. reduce aggregate demand.
B. increase aggregate demand.
C. reduce aggregate supply.
D. increase aggregate supply.
A. reduce aggregate demand.
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Studies by the U.S. Census Bureau have shown that
A) there is significant income mobility in the U.S. over time. B) families remain below the poverty line for an average of five years. C) income mobility in the U.S. is minimal. D) over half the people below the poverty line never move out of poverty.
When investors invest in something simply because everyone else is doing it, they are:
A. suspect to "tulip mania." B. following a "herd instinct." C. acting objectively on full information available in the market. D. leveraging market performance for their own gain.
Because of fixed interest rates, there is no risk involved with holding corporate bonds
a. True b. False Indicate whether the statement is true or false
The classical economists espoused
A. the crude version of the quantity theory of money. B. the sophisticated version of the quantity theory of money. C. both the crude and sophisticated quantity theories of money. D. neither the crude nor sophisticated quantity theories of money.