Smarter Than the Average College Graduate
My readers are, not that I had any doubts. Scores ranged from 70 to 96+, way to go Fred. Me? 88.7 or 4 wrong. Can't remember all four but do take issue with this one:
30) Which of the following fiscal policy combinations would a government most likely follow to stimulate economic activity when the economy is in a severe recession?
A. increasing both taxes and spending
B. increasing taxes and decreasing spending
C. decreasing taxes and increasing spending
D. decreasing both taxes and spending
Blue right, my answer in red. Not exactly a trick question but obviously I read it too fast. I thought it asked for the best course to take rather than what "would a government most likely follow", and, as pointed out here regularly, and throughout history, those are rarely the same.
Apparently these testers have swallowed the Keynesian kool-aid, unlike me who tends to trust the Miltonian monetarist economic model. The current economic calamity sets up what will prove to be a fascinating joust between those schools, no doubt with a heavy dash of Marxism, for flavor.
30) Which of the following fiscal policy combinations would a government most likely follow to stimulate economic activity when the economy is in a severe recession?
A. increasing both taxes and spending
B. increasing taxes and decreasing spending
C. decreasing taxes and increasing spending
D. decreasing both taxes and spending
Blue right, my answer in red. Not exactly a trick question but obviously I read it too fast. I thought it asked for the best course to take rather than what "would a government most likely follow", and, as pointed out here regularly, and throughout history, those are rarely the same.
Apparently these testers have swallowed the Keynesian kool-aid, unlike me who tends to trust the Miltonian monetarist economic model. The current economic calamity sets up what will prove to be a fascinating joust between those schools, no doubt with a heavy dash of Marxism, for flavor.
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