Suppose the economy experiences a recessionary gap. Policymakers who believe that the private sector has failed to provide adequately, a host of services that would benefit society would favor which of the following policies to close the gap?
A) subsidies to private firms to spur production
B) decreases in income tax rates
C) increases in government purchases
D) decreases in interest rates
Ans: C) increases in government purchases
Economics
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The most significant change in the economic environment that changed the demand for financial products in recent years has been
A) the aging of the baby-boomer generation. B) the dramatic increase in the volatility of interest rates. C) the dramatic increase in competition from foreign banks. D) the deregulation of financial institutions.
Economics
Rent controls are an example of a
A) price floor. B) price ceiling. C) price floor for the consumer and a price ceiling for the producer. D) nonprice rationing device.
Economics