Automatic stabilizers were clearly in evidence during the recession of 2007-2009 as
A) tax revenues and transfer payments both decreased.
B) tax revenues decreased.
C) tax revenues increased.
D) transfer payments decreased.
B
Economics
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Financial deregulation and innovation since the late 1970s has made spending, especially new housing, ________ sensitive to changes in the market interest rate, leading to a ________ IS curve
A) more, steeper B) more, flatter C) less, steeper D) less, flatter
Economics
A decrease in the price level will lead to
A) a decrease in the real interest rate and an increase in net exports. B) an increase in the real interest rate and an increase in net exports. C) a decrease in the real interest rate and a decrease in net exports. D) an increase in the real interest rate and a decrease in net exports.
Economics