In response to the recession of 2008-2009, the fiscal policy of the federal government was
a. highly expansionary, and this Keynesian stimulus promoted a rapid recovery.
b. highly expansionary, but this was largely offset by the Fed's restrictive monetary policy
c. highly restrictive, but this was largely offset by the Fed's highly expansionary monetary policy
d. highly expansionary, but the unemployment rate nonetheless remained high during 2010 and 2011
D
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FICA is a payroll tax imposed on employers and workers that is used to fund Social Security and Medicare. Which of the following statements regarding the tax is true?
A) Most economists believe the burden of the tax falls almost entirely on workers. B) Congress wanted the burden of the tax to be greater for employers than for workers. C) Most economists believe the burden of the tax falls mostly on employers. D) Employers are required to pay a greater share of the tax than workers but most economists believe the burden of the tax is shared equally.
The quantity of reserves demanded equals
A) required reserves plus borrowed reserves. B) excess reserves plus borrowed reserves. C) required reserves plus excess reserves. D) total reserves minus excess reserves.