A problem with using fiscal policy to fine-tune the economy is that
A) agreeing on the appropriate fiscal policy is time consuming.
B) fiscal policy impacts the economy too fast.
C) fiscal policy impacts only urban areas of the nation.
D) fiscal policy impacts only the largest states in the nation.
Answer: A) agreeing on the appropriate fiscal policy is time consuming.
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The United States uses a single payer model of healthcare in which the government pays for all healthcare. Because a single payer model of health care creates no deadweight loss, most economists agree that the U.S. system of health care is efficient
A) Both sentences are false. B) The first sentence is false; the second sentence is correct. C) The first sentence is correct; the second sentence is false. D) Both sentences are correct.
The main reason that hyperinflation renders a currency worthless is that ________
A) the government cannot print money fast enough to keep up with the rising prices B) laws against raising prices are easily evaded C) reducing government expenditures is politically unpopular D) the government's "official" inflation rate is always a gross understatement E) as soon as inflation seems out of control, everyone knows that the currency will soon lose whatever value it has today