Shortage equal to ab would be met using international monetary reserves Price of

Question

Shortage equal to ab would be met using international monetary reserves

Price of a pound will increase to $3

Price of a dollar will increase to 3 pounds

Payment deficit will cause changes in price and income levels, which reestablishes the original exchange rate

72. As the economy declines into recession, the collection of personal income tax revenues automatically falls. This phenomenon best illustrates how a progressive income-tax system:

Serves as an automatic stabilizer for the economy

Increases crowding out in the economy

Decreases real interest rates in the economy

Offsets the timing problem for fiscal policy

2004 to 2005

1999 to 2000

2003 to 2004

2002 to 2003

74. When the Federal government uses taxation and spending actions to stimulate the economy it is conducting:

Employment policy

Monetary policy

Incomes policy

Fiscal policy

75. The functions of money are to serve as a:

Determinant of consumption, investment, and government spending

Factor of production, exchange, and aggregate supply

Unit of account, store of value, and medium of exchange

Resource allocator, method for accounting, and means of income distribution

Explanation / Answer

Answers:

71). Price of a pound will increase to $3

72). Serves as an automatic stabilizer for the economy

73). 2002 to 2003

74). Fiscal policy

75). Unit of account, store of value, and medium of exchange

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.