Using fiscal and monetary policies to deal with a demand shock ______.
a. will prevent the occurrence of a supply shock
b. will create a negative supply shock
c. is more effective than using them to deal with a supply shock
d. is less effective than using them to deal with a supply shock
c. is more effective than using them to deal with a supply shock
Economics
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Distinguish between risk that can be reduced through diversification and risk that cannot be reduced through diversification
What will be an ideal response?
Economics
According to the permanent income hypothesis, taxpayers react to a one-time tax rebate
A) by spending all of the tax rebate. B) by spending more than the amount of the tax rebate. C) by saving half of the tax rebate and spending the rest. D) by saving all of the tax rebate.
Economics