According to the Keynesian model, the optimal fiscal policy is to
a. increase cyclical but not structural deficits during a recession.
b. reduce cyclical and structural deficits during a recession.
c. increase structural deficits during an recession.
d. maintain a balanced budget in case of national emergency.
A
Economics
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If an economy is operating on its production possibilities curve, it is:
A) efficient and fully employed. B) fully employed but not necessarily efficient. C) efficiently producing but not necessarily fully employed. D) inevitably going to grow in the future.
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Which of the following insurance practices attempts to minimize the adverse selection problem insurance companies face?
A) prevention of fraud B) risk-based premiums C) restrictive provisions D) deductibles
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