The economic impact of automatic stabilizers during recessionary periods is to
A. increase unemployment.
B. decrease money growth.
C. increase taxes.
D. increase government spending.
Answer: D
You might also like to view...
When checks are exchanged between banks, the Fed oversees the banks to ensure the appropriate funds have been transferred. This is known as
A) check kiting. B) check floating. C) check balancing. D) check clearing.
If the real interest rate is below the equilibrium real interest rate
A) lenders will be unable to find borrowers willing to borrow all of the available funds and the real interest rate will fall. B) borrowers will be unable to borrow all of the funds they want to borrow and the real interest rate will rise. C) lenders will be unable to find borrowers willing to borrow all of the available funds and the real interest rate will rise. D) borrowers will be unable to borrow all of the funds they want to borrow and the real interest rate will fall.