If a "liberal" wanted to increase aggregate demand, which of the following would she tend to favor?

a. An increase in government spending, because it will increase the size of the public sector.
b. A decrease in transfer payments, because it keeps the public sector small.
c. An increase in transfer payments, because it has a larger multiplier than tax changes.
d. A decrease in taxes, because it makes the public sector smaller.


a

Economics

You might also like to view...

For a small-denomination certificate of deposit to be included in M2 it must be a denomination of less than

A) $1,000. B) $100,000. C) $1,000,000. D) $10,000.

Economics

In the United States, the primary agency responsible for foreign exchange intervention is

A) the U.S. treasury. B) the Federal Reserve. C) the exchange stabilization fund. D) the IMF.

Economics

Refer to Scenario 18.1. If the fishermen are given the right to clean water,

A) the outcome will be more efficient than if the factory is given the right to use the water as it sees fit. B) the outcome will be less efficient than if the factory is given the right to use the water as it sees fit. C) the efficient outcome will occur no matter who is given which property right, and the individual gains will be the same in each case. D) the factory will be forced to shut down. E) the efficient outcome will occur no matter who is given which property right, but how that maximum gain is split will be determined during bargaining.

Economics

Figure 2-3


shows the production possibilities frontier for a music processing plant that can produce both compact disks and cassettes. The opportunity cost of moving from point B to C is
a.
20 cassettes
b.
120 compact disks
c.
100 cassettes
d.
60 compact disks
e.
180 compact disks

Economics