In an expansion, federal tax revenues increase proportionally more than real GDP without the need for any government policy. This increase is an example of
A) the effect of deficit spending.
B) discretionary fiscal policy.
C) automatic fiscal policy.
D) automatic monetary policy.
E) discretionary monetary policy.
C
Economics
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Excess supply in an unregulated market will cause the price of a product to fall
Indicate whether the statement is true or false
Economics
Lenders generally want borrowers to agree to invest prudently, yet once a loan is made borrowers may use the funds in a highly risky fashion. This leads to the problem of
A) deposit insurance. B) investor selection. C) critical mass. D) moral hazard.
Economics