8. (2010-5) Which of the following is an example of fiscal policy? (A) Increasing government expenditures to build highways (B) Increasing the money supply to increase income (C) Decreasing the discount rate to lower unemployment and inflation (D) Decreasing the federal funds rate to stimulate investment (E) Decreasing the reserve ratio to increase bank reserves 9. (2010-41) If the economy was in a severe recession, the most expansionary fiscal policy would be to (A) decrease both personal income taxes and government spending by equal amounts (B) decrease both the reserve requirement and government spending by the same proportion (C) decrease personal income taxes and increase government spending by equal amounts (D) increase the money supply and increase government spending by the same proportion (E) increase social security taxes and increase government spending by equal amounts
8. (2010-5) Which of the following is an example of fiscal policy? (A) Increasing government expenditures to build highways (B) Increasing the money supply to increase income (C) Decreasing the discount rate to lower unemployment and inflation (D) Decreasing the federal funds rate to stimulate investment (E) Decreasing the reserve ratio to increase bank reserves 9. (2010-41) If the economy was in a severe recession, the most expansionary fiscal policy would be to (A) decrease both personal income taxes and government spending by equal amounts (B) decrease both the reserve requirement and government spending by the same proportion (C) decrease personal income taxes and increase government spending by equal amounts (D) increase the money supply and increase government spending by the same proportion (E) increase social security taxes and increase government spending by equal amounts
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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the right answer is A and C and i wonder why. pls explain by details, thx!
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