According to the text, which of the following consequences could we predict most confidently if the federal government was effectively required, by a constitutional amendment,
to match expenditures and tax revenues (balance the budget) in each fiscal year?
A) An end to discretionary fiscal policy
B) An end to efforts to manipulate the economy for partisan political purposes
C) Frequent and sudden changes in previously legislated tax rates and expenditure commitments
D) Less unemployment but more inflation
C
Economics
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The Federal Reserve may choose to monetize the debt in order to
a. reduce the burden of the national debt. b. shift the supply curve of money outward. c. shift the demand curve for money inward. d. reduce the volume of reserves in commercial banks.
Economics
In the long run:
A. all costs are variable costs. B. all costs are fixed costs. C. fixed costs are greater than variable costs. D. variable costs equal fixed costs.
Economics