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When would the government most likely increase its spending?
When unemployment has increased
A decrease in federal defense spending in the US is likely to cause?
layoffs at a large defense contracting company
A decrease in federal defense spending in the US is likely to cause which actions?
layoffs at a large defense contracting company
An increase in government spending on health care is likely to shift the?
Aggregate demand curve to the right. Stay Golden
The Federal Reserve wants to increase the money supply in the US. What is the Federal Reserve likely to do to accomplish this?
buy securities on the open market.
The us government has decided to issue federal income tax rebates to taxpayers what is the most likely goal of these rebates?
the goal is to get the consumer to increase their spending
When would the government most likely increase its spending?
When unemployment has increased
When would government most likely increase its spending?
When unemployment has increased
What would not increase GPD?
An increase in government spending on welfare programs would likely not increase GDP if the spending is not effectively stimulating economic activity and productivity. If the spending does not lead to increased consumption, investment, or exports, it may not have a significant impact on GDP growth.
A decrease in federal defense spending in the US is likely to cause?
layoffs at a large defense contracting company
A decrease in federal defense spending in the US is likely to cause which actions?
layoffs at a large defense contracting company
An increase in government spending on health care is likely to shift the?
Aggregate demand curve to the right. Stay Golden
What is the most likely result of an increase in interest rates a. investment spending rises b. investment spending falls c. the economy speeds up d. unemployment falls?
b. investment spending falls
What is the most likely effect of the Federal Reserve lowering the discount rate on overnight loans?
The most likely effect of the Federal Reserve lowering the discount rate on overnight loans would be an increase in the money supply. an increase in the money supply
The Federal Reserve wants to increase the money supply in the US. What is the Federal Reserve likely to do to accomplish this?
buy securities on the open market.
How would the us government most likely react to a boom in the economy?
Increase government spending in order to stimulate the economy
What can the federal government do to try to bring the economy out of recession?
the federal reserve would try to lower nominal interest rate (monetary policy), not part of govt. The federal govt. would stimulate spending, either by lowering taxes or pumping money into the economy and spending more.
