Which of the following is an argument against balancing the federal budget?
A. Doing so may prevent the government from pulling the economy out of recession.
B. An increase in government spending and taxes by the same amount does not affect income.
C. The economy will self-adjust so deficit spending is not necessary.
D. None of the choices are correct.
Answer: A
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Along the elastic range of a demand curve, a price change causes:
a. a change in total revenue in the opposite direction. b. a change in total revenue in the same direction. c. no change in total revenue. d. an unpredictable change in the total revenue.
Refer to the payoff matrix below. If Best Treats announces that it will introduce the new health snack, Healthy Snacks ________ believe Best Treats as their incentives ________ align.
Healthy Snacks and Best Treats are two firms competing in the health food snacks market. Both are considering introducing a new health food snack made purely of dried power fruits. The payoff matrix shows their net economic profit in millions for the different strategies.
A) should not; do
B) should; do
C) should not; do not
D) should; do not