The traditional Keynesian approach to fiscal policy assumes that
A) an equal income distribution ensures a stable economy.
B) consumers spend more when their incomes are higher.
C) cutting taxes is a more effective way to stimulate the economy than is increasing government spending.
D) the effect of unemployment compensation is to destabilize the economy.
B
Economics
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A decrease in "financial frictions" is associated with ________
A) a decrease in the credit spread B) more efficient functioning of financial markets C) reduced real cost of borrowing for businesses D) an increase in planned investment spending E) all of the above
Economics
In which of these markets would the firms be facing the least elastic demand curve?
A) perfect competition B) pure monopoly C) monopolistic competition D) oligopoly
Economics