Which of the following is a common criticism of the use of fiscal policy?
A) Fiscal policy is often enacted too quickly, before the market is ready for it.
B) A government borrowing money to finance fiscal policy can crowd out investments.
C) Expansionary fiscal policy can help pull an economy out of a recession.
D) If no fiscal policy is used, the economy will never be able to correct itself, even partially.
Ans: B) A government borrowing money to finance fiscal policy can crowd out investments.
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The law of demand states that, ceteris paribus, price and quantity demanded are:
a. directly related. b. inversely related. c. uniformly related. d. horizontally related.
What happens to the marginal cost curve when the marginal physical product of labor is rising?
A) It becomes upward sloping. B) It becomes vertical. C) It becomes downward sloping. D) It becomes horizontal.