Which of the following would be considered a fiscal policy action?
A) Spending on the war in Afghanistan is increased to promote homeland security.
B) Tax incentives are offered to encourage the purchase of fuel efficient cars.
C) A tax cut is designed to stimulate spending during a recession.
D) The Fed increases the money supply.
C
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If the inflation rate is 7 percent, real GDP growth is 2 percent, and the current budget deficit is $100 billion, what must the current national debt be if the debt-GDP ratio is to remain the same?
A) $1,111 billion B) $2,000 billion C) $1,429 billion D) $5,000 billion
A Nash equilibrium occurs when
A) players choose their best strategy given the strategies chosen by others. B) the efficient allocation of resources is achieved by setting marginal revenue equal to marginal cost. C) a monopolist is forced to produce the efficient level of output. D) oligopolists cooperate with each other.