According to Keynes' philosophy of government budgets, _____
a. chronic deficits accumulate into a national debt
b. permanent surpluses are desirable
c. fiscal policy focuses on maintaining an annually balanced budget
d. deficits dampen aggregate demand in the short run and reduce the federal debt
e. deficits are appropriate during recessions
e
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Asymmetric information problems are less severe the __________ the borrowing firm, since there is __________ publicly available information about those firms
A) larger; more B) larger; less C) smaller; more D) smaller; less
Assume government policy increases the demand for corn
A) The consumer surplus of corn buyers will increase. B) The producer surplus of corn growers will decrease. C) The producer surplus of corn growers will increase. D) The producer surplus of corn growers will not change.