An economy is in the midst of a recession. An example of a government policy aimed at moving the economy back to potential GDP is:
a) an increase in taxes.
b) an increase in government spending on infrastructure improvements.
c) an increase in the poverty tax.
d) a decrease in unemployment benefits.
Ans: b) an increase in government spending on infrastructure improvements.
Economics
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An alternative to patent protection might be
A) dollar prizes for innovation. B) an appeal to altruism. C) granting of citizenship for innovation. D) forcing innovators to cede their innovations.
Economics
A bank finds itself short of required reserves and therefore borrows from another commercial bank. The interest rate on this loan is
a. zero. b. the prime rate. c. the discount rate. d. the federal funds rate. e. the required reserve ratio.
Economics