Suppose the economy experiences a recessionary gap. Policymakers who believe that government is too big would favor which of the following policies to close the gap?
A) decreases in transfer payment
B) decreases in income tax rates
C) increases in government purchases
D) increases in interest rates
Ans: B) decreases in income tax rates
Economics
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M2 consists of: a. M1 plus savings accounts, small time deposits, money market mutual funds, and miscellaneous near-monies. b. coins, currency, and checkable deposits only
c. only near-monies. d. M1 plus time deposits only. e. M1 plus money market mutual funds only.
Economics
Development assistance is designed to encourage a developing country to
a. increase consumer goods today. b. restrict the inflow of foreign direct investment. c. invest in its capital stock. d. reduce labor productivity.
Economics