Laissez-faire economics holds which of the following to be true?
a. The government should actively intervene in the economy.
b. The government should not take an active role in the economy.
c. The government should do everything possible to reduce unemployment.
d. The government should lower interest rates during a recession.
Question 2
What is the main goal of fiscal policy?
a. to affect how much money is available to state governments for capital projects
b. to determine how much interest the government will pay on the federal debt
c. to stimulate the economy by increasing the number of exports into the United States
d. to use taxes and government spending to help stimulate or slow down economic growth
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Economics Homework