Author: Anonymous

In most nations, one or more governing bodies must approve government spending or new tax policies. This process causes a(n) ________ lag between setting fiscal policy and seeing its effects.

Countercyclical fiscal policy

Theoretically, how will an increase in the required reserve ratio affect the size of the money supply?

Contractionary monetary policy occurs when ________ in an effort to control an economy that is expanding too quickly.

If the marginal propensity to consume is equal to 0.4, the spending multiplier is equal to ________.

If the interest rate on a loan is higher than the expected return from an investment,

Year to year, governments can produce budgets where outlays exceed revenue receipts. The total of all of these unpaid outlays is known as

If the government lowers tax rates and tax revenue falls by $100 million, we can expect consumption spending to ________ and equilibrium output to ________.

If people decide to save a smaller percentage of their incomes, then the value of the spending multiplier will ________ and changes in government spending will have ________ impact on gross domestic product.

If the interest rate on a loan is higher than the expected return from an investment,