Fiscal policy would be more effective if
A. potential income was unknown.
B. the government could change taxes and expenditures rapidly.
C. the size of the government debt didn't matter.
D. crowding out occurred more often.
Answer: B
You might also like to view...
Joss is a marketing consultant. Iris and Daphne are potential customers interested in commissioning Joss to undertake a market survey and compile the findings in a report
Iris is willing to pay $500 for the service while Daphne is willing to pay $800. Suppose that the opportunity cost of Joss's time is $1,200. Assume that Iris and Daphne do not know each other. If the price of the report is $800 per copy A) only Daphne will purchase Joss's services and Joss will undertake the job for her. B) both Iris and Daphne will purchase Joss's services and Joss will undertake the job. C) only Daphne will want to purchase Joss's services but Joss will not be willing to do the work. D) neither Iris nor Daphne will commission the work.
The substantial fluctuations in velocity make the equation of exchange more useful in predicting changes in nominal GDP
a. True b. False Indicate whether the statement is true or false