Which of the following is an example of a decrease in government purchases?
a. The government cancels an order for new military equipment
b. The Federal Reserve sells government bonds.
c. The government increases personal income taxes.
d. The government decreases unemployment insurance benefit payments.
a
Economics
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Suppose the government decided to tighten monetary policy and decrease government expenditures. In the short run in the Keynesian model, the effect of these policies would be to ________ the real interest rate and ________ the level of output
A) lower; decrease B) lower; have an ambiguous effect on C) have an ambiguous effect on; decrease D) raise; decrease
Economics
The extra benefit resulting from a small increase in an activity is called the:
A. opportunity cost. B. marginal benefit. C. marginal cost. D. diminishing returns of the activity.
Economics