During a severe recession, appropriate economic policy might include
A. An open market purchase by the Fed, a decrease in the tax rates, or a decrease in the budget deficit.
B. An open market purchase by the Fed, a decrease in the discount rate, or a decrease in government regulation.
C. An open market sale by the Fed, a decrease in the discount rate, or an increase in the budget deficit.
D. A decrease in government spending, a decrease in the discount rate, or a decrease in government regulation.
Answer: B
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One of the provisions of the Temporary Assistance for Needy Families (TANF) program was to:
A. Guarantee cash assistance for poor families B. Set a 5-year lifelong limit on welfare benefits C. Get the Federal government to pay more of the cost of welfare D. Make welfare benefits more equitable among those receiving them
The specificity rule implies that changing property rights as a way to correct externalities is preferred to the use of government taxes and subsidies.
Answer the following statement true (T) or false (F)