Author Question: The federal government's fiscal policy (taxing and spending policy) during the 1920s was one in ... (Read 370 times)

sam.t96 · **on:** Jun 30, 2018

The federal government's fiscal policy (taxing and spending policy) during the 1920s was one in which

(a) the federal budget was in surplus every year.
(b) the federal budget exerted a mildly deflationary impact on the economy,
tending to slow overall spending in the economy.
(c) Parkinson's third law, expenditures rise to meet income,
seemed to hold for the federal government.
(d) all of the above applied.

Question 2

Studies indicate that after the Civil War and up to the 1890s, farmers did not benefit from an improvement in their terms of trade between agriculture and manufacturing.

However, they did benefit from a decline in transportation charges relative to farm prices. Indicate whether the statement is true or false