Ben recently lost his job at a major U.S. auto plant in one of the rust belt states. After looking unsuccessfully for work in a similar industry for several months, he plans to start interviewing with road and bridge repair companies. He speculates that if the government begins to contract with companies that repair highways and bridges, he may find steady work, at least in the short term. Which of the following statements best describes the strategy behind his thoughts?
A) The best way for the government to reign in on too much money floating around the system is to hire people and pay them wages.
B) Ben doesn't understand the causes of unemployment. We obviously don't need any more autos on the roads if the plant has closed. Repairs will slow down rather than increase.
C) If the current administration asks the Fed to raise interest rates, it will do more than if the current administration begins contracting with road repair companies.
D) By increasing government spending through road and bridge repair and construction, the government will intervene in the free-market economic system to help jump-start a weak economy.
Correct Answer:
Verified
Q285: Efforts by the Federal Reserve Bank (the
Q286: When describing the state of the U.S.
Q287: Which of the following statements about the
Q288: Discuss the views of economist Adam Smith.
Q289: Keynesian economic theory suggests
A) reducing government involvement
Q291: Which of the following statements about government
Q292: Senator Shulei Lee is alarmed at the
Q293: Explain the significance of "price" in a
Q294: The chair of the Federal Reserve Bank
Q295: Cooper created Coop's Consulting to earn a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents