Question

9.All economist agree that Fiscal Policy should be used to influence the business cycle?

A.True

B.False

10.Prior to the Great Depression most economists thought the economy would self correct in a timely way

A.True

B.False

11.When taxation income exceeds government spending this is called a

A.deficit

B.surplus

C.balanced budget

D.none of these

12.Banks are required to have all deposits on hand and available on demand by all customers

A.True

B.False

Answer 1

9.All economist agree that Fiscal Policy should be used to influence the business cycle?

B.False
Classical economists are against use of fiscal policy.

10.Prior to the Great Depression most economists thought the economy would self correct in a timely way

A.True

This was the belief of the classical economists.

11.When taxation income exceeds government spending this is called a

B.surplus

12.Banks are required to have all deposits on hand and available on demand by all customers

B.False
Only required to maintain required reserve ratio.