Which of the following best reflects the nonactivist view of stabilization policy?
a. Monetary and fiscal policies exert little impact on the economy.
b. Discretionary policy changes often make matters worse.
c. Fiscal policy should be used to help stabilize the economy; monetary policy should not.
d. Expansionary monetary policy is the primary source of rapid economic growth.
B
Economics
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The government borrows money to cover budget deficits by
A) purchasing bonds. B) petitioning the International Monetary Fund. C) selling bonds. D) filling out a loan application at Citibank.
Economics
The small-firm effect refers to the
A) negative returns earned by small firms. B) returns equal to large firms earned by small firms. C) abnormally high returns earned by small firms. D) low returns after adjusting for risk earned by small firms.
Economics