If the economy is slipping into a recession, which of the following would be an appropriate fiscal policy?
A) a decrease in oil prices
B) a decrease in government purchases
C) a decrease in taxes
D) an increase in the money supply and a decrease in interest rates
C
Economics
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Suppose some members of Enron's board of directors are aware of the company's true financial condition, information that is not available to most investors. This is an example of
A) lemon problem. B) moral hazard. C) adverse selection. D) asymmetric information.
Economics
Year-to-year movements in real exchange rates between industrialized countries like the U.S. and Canada are caused mostly by
A) changes in relative rates of inflation. B) changes in relative growth rates of output. C) changes in quotas or tariffs. D) changes in capital controls. E) changes in nominal exchange rates.
Economics