The Keynesian analysis of fiscal policy argues that:
a. fiscal policy should generally be expansionary except during periods of economic recession.
b. fiscal policy should generally be restrictive except during inflationary booms.
c. the federal budget should be balanced annually except during war.
d. the federal budget should be used to maintain aggregate demand at a level consistent with full employment.
d
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Describe the product cycle, including addressing the various inputs that are required over time and the resulting production location decisions
What will be an ideal response?
When a country has flexible exchange rates the:
a. Reserves account must equal zero. b. Reserves account must be positive. c. Reserves account must be negative. d. Current account must equal minus the reserves account. e. Reserves account can be positive or negative.