Keynesians tend to believe that
A. laissez-faire policies stabilize market economies.
B. recessions are temporary.
C. expansionary government spending and tax cuts are cures for recessions and depressions.
D. in the short run, aggregate supply should be manipulated to stabilize the economy.
C. expansionary government spending and tax cuts are cures for recessions and depressions.
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Which of the following is true of bank reserves held at the Fed?
A) These reserves are a liability to the bank and an asset to the Fed. B) These reserves are a liability to both the bank and the Fed. C) These reserves are an asset to the bank and a liability to the Fed. D) These reserves are an asset to both the bank and the Fed.
Which of the following has not been suggested as a reconciliation of Leontief's findings?
A) international differences in tastes B) U.S. tariff structure C) failure to take into account natural resources D) temporary data problems immediately after World War II