Automatic stabilizers
A. are probably insufficient to completely offset strong recessionary pressures.
B. tend to accelerate abrupt changes in economic activity and cause expenditures to move pro-cyclically.
C. give policy makers more time to formulate nondiscretionary policy.
D. are unimportant to those workers most likely to be laid off or otherwise harmed by recessions.
A. are probably insufficient to completely offset strong recessionary pressures.
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Suppose that a bank has $250 in vault cash, $750 in deposits at the Federal Reserve, $9,000 of loans, and deposits of $10,000. What is the bank's reserve ratio?
a) 2.5% b) 10% c) 33% d) 90%
One of the reasons that President Bush advocated for the 2003 tax reform was
a. to create a ‘stimulus package' to counter a deepening of the recessionary phase ofthe business cycle b. to stem the growing rate of inflation c. to provide the revenues to fight the war on terrorism d. to curb the outflow of revenue to foreign countries by reducing trade imbalances e. to reduce the government deficit