The lag problem associated with fiscal policy is due mostly to
a. the fact that business firms make investment plans far in advance.
b. the political system of checks and balances that slows down the process of implementing fiscal policy.
c. the time it takes for changes in government spending or taxes to affect the interest rate.
d. All of the above are correct.
b
Economics
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The reduction or covering of a foreign exchange risk is called
A) hedging. B) speculation. C) intervention. D) arbitrage.
Economics
Suppose that the price index in 1999 was 170 and your salary was $44,000. Suppose in 2016 the consumer price index will be 290. What salary will you have to earn in 2016 in order to equal your 1999 real income?
A) $66,000 B) $77,647 C) $75,059 D) $83,209
Economics