Increases in the federal budget deficit from 2007 to 2009 were caused:
A. exclusively by the loss of tax revenue due to recession.
B. exclusively by expansionary fiscal policy, as shown through growth in the cyclically
adjusted deficit.
C. primarily by a combination of recession and expansionary fiscal policy.
D. primarily by increased outlays to a rapidly growing number of Social Security recipients.
C. primarily by a combination of recession and expansionary fiscal policy.
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A government policy that taxes saving in order to discourage saving and encourage spending will
A) slow economic growth. B) speed economic growth. C) create a greater incentive for people to specialize. D) strengthen people's property rights. E) increase the growth rate of capital.
A game of incomplete information is distinct from one of complete information in that players:
a. do not observe each others' actions. b. do not know each others' payoff functions. c. do not know the timing of moves. d. use mixed strategies.