Question
39. Which of the following statements is true? a Most economists support the use of fiscal policy to help push the economy in a desired
39. Which of the following statements is true?
a | Most economists support the use of fiscal policy to help push the economy in a desired direction, and the use of monetary policy for fine tuning. |
b | Many economists recommend the use of tax cuts to enhance work effort, investment, and innovation, and the use of government spending on public capital projects (infrastructure). |
c | The US (gross) national debt was $10.0 trillion in May 2017. |
d | All of the above. |
e | Only a) and b) |
38. Which of the following statements is true?
a | The government spent $700 billion to help financial institutions through the Troubled Asset Relief Program (TARP) of October 2008. |
b | A political business cycle may destabilize the economy: Election years have been characterized by more expansionary policies regardless of economic conditions. |
c | There is crowding-out when an increase in one sectors spending increases another sectors spending. |
d | All of the above. |
e | Only a) and b) |
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