Fiscal policy involves ________
A) taxes and government spending
B) setting interest rates
C) controlling the amount of money in the economy
D) all of the above
E) none of the above
A
You might also like to view...
The government of Richland has set a minimum wage for factory workers. This will lead to an ________ if above the current market wage
A) increase in total surplus B) increase in the number of workers supplied C) excess demand for workers D) increase in income inequality
All of the following are true regarding flexible exchange rates except
A. Exchange rate movements alter relative prices and may disrupt import and export flows. B. The quantity of foreign exchange demanded equals the quantity supplied. C. Some people are hurt while others are helped by exchange rate movements. D. Speculators typically push exchange rates away from the long-term equilibrium.