Which is an example of discretionary fiscal policy?
A. The government increases the stabilizers.
B. The government decreases the stabilizers.
C. The government increases taxes.
D. The government does nothing.
E. None of the above.
For deficit spending to occur, which of the following must be true?
A. Government taxes exceed spending.
B. Government spending is less than taxes.
C. Government spending is more than tax revenue.
D. Government spending is equal to tax revenue.
E. None of the above.
Generally, the government finances a budget deficit by:
A. Reducing the national debt
B. Printing more money
C. Issuing common stock
D. Selling bonds
E. Borrowing money
Which best describes fiscal policy?
A. The buying and selling of stock
B. The adjustment of stabilizers
C. Government spending coupled with taxation changes
D. Government noninvolvement
E. All of the above- When a recession occurs, which of the following is appropriate fiscal policy?
A. Increased taxes
B. Decreased spending
C. Decreased taxes
D. Both A and B
E. None of the above- When inflation is too high, which of the following is appropriate fiscal policy:
A. Decreased unemployment
B. Increased spending
C. Increased price level
D. Increased taxes
E. Decreased taxes- An increase in the price level will result in:
A. Increased employment
B. Decreased employment
C. Increased demand
D. Increased taxes
E. None of the aboveFiscal Policy