Reference no: EM131389603
1. Which of the following are valid criticisms of fiscal policy?
A. It is hard to predict government spending and tax receipts because a significant portion of the federal budget is “non-discretionary.”
B. Fiscal policy is often based on politics rather than being purely macroeconomic in nature, thus producing a bias toward budgetary deficits.
C. There are inherent lags that prevent fiscal policy from being timely.
D. All of the above are valid criticisms of fiscal policy.
2. If the Fed were to raise interest rates:
A. Your real income went up but your nominal income went down.
B. Your real income went up but your nominal income remained the same.
C. Your nominal income went up but your real income went down.
D. Your nominal income went up but your real income remained the same.
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If the fed were to raise interest rates
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