If the government uses fiscal policy to close a recessionary gap, government
A) expenditure must be increased by more than the gap because of the government expenditure multiplier.
B) taxes must be cut by more than the gap because of the tax multiplier.
C) expenditure can be increased by less than the gap because of the government expenditure multiplier.
D) taxes can be raised by less than the gap because of the tax multiplier.
E) taxes must be raised by more than the gap because of the tax multiplier.
C
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The current account and the financial account must do which of the following?
a. equal the capital account b. equal each other c. move in the same direction d. equal zero when added together e. equal 1 when added together
If a "certificate of convenience and public necessity" protects a monopolist's position, the barrier to entry this firm relies on is called
A) a tariff. B) a government license. C) a patent. D) economies of scale.