Q6. When an economy is in an economic expansion, automatic stabilizers will tend to alter government spending and taxation so as to: A) reduce the budget deficit (or increase the surplus). B) ensure that the budget will remain in balance. C) enlarge the budget deficit (or reduce the surplus).
Q7. Automatic stabilizers work by:
A) instituting counter-cyclical fiscal policy without the delays associated with policy changes that require legislative action. B) initiating legislative action designed to stimulate demand during the contraction phase of the business cycle and restrain demand during the expansion phase. C) initiating changes in monetary policy without requiring action by the central bank.
Q8. Which of the following statements best describes automatic stabilizers? Although no legislative action has been taken, automatic stabilizers are programs that apply: A) stimulus during a recession but do not apply restraint during an economic boom. B) restraint during a recession and stimulus during an economic boom. C) stimulus during a recession and restraint during an economic boom.
Q9. Which of the following statements best explains how automatic stabilizers work? Even without a change in fiscal policy, automatic stabilizers tend to promote: A) a budget surplus during a recession and a budget deficit during an inflationary expansion. B) a budget deficit during a recession and a budget surplus during an inflationary expansion. C) a budget deficit during a recession but do not promote a budget surplus during an inflationary expansion.
Q10. Which of the following is most likely to be described as an automatic fiscal policy stabilizer? A) A fixed income tax rate. B) Increase in government spending on defense. C) Cuts in the Federal Funds target rate.
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发表于 2009-1-15 16:41
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