Fiscal policy is policy aimed at controlling undesired fluctuations in overall spending through changes in
A) government expenditures and taxes.
B) government subsidies to marginal business firms.
C) interest rates.
D) methods of making seasonal adjustments.
E) price and wage regulation.
Question 2
A price support on milk is not in the interest of milk drinkers, so why do elected public officials successfully implement milk price supports?
A) Milk price supports are in the public interest.
B) A small number of households (dairy farmers) gain a great deal, while the costs of the support program is spread among millions of other (milk drinking) households.
C) Dairy farmers are selfish.
D) Milk drinkers are generally unselfish.
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