Question
More people want to buy sovernment bonds rather than invest in private companies square o When revenues are loss than expenditures square o Congress' attemple at regulating the business cycle square o When revenues are greater than expenditures square o The Fed's attemptat regulating the businesscyde square o 5 pts
Answer
3.1
(258 Votes)
Sapphire
Professional · Tutor for 6 years
Answer
1. More people want to buy government bonds rather than invest in private companies: [Choose] Economic uncertainty or low confidence in private sector.2. When revenues are less than expenditures: [Choose] Budget deficit.3. Congress's attempt at regulating the business cycle: [Choose] Fiscal policy.4. When revenues are greater than expenditures: [Choose] Budget surplus.5. The Fed's attempt at regulating the business cycle: [Choose] Monetary policy.
Explanation
1. **More people want to buy government bonds rather than invest in private companies:** This typically occurs during periods of economic uncertainty or lower confidence in private sector performance. Government bonds are perceived as safer investments. 2. **When revenues are less than expenditures:** This situation describes a budget deficit. It means that the government is spending more than it earns, which can lead to increased borrowing or spending cuts. 3. **Congress's attempt at regulating the business cycle:** Through fiscal policies like taxation and government spending, Congress can influence economic activity, aiming to smoothen periods of boom and bust. 4. **When revenues are greater than expenditures:** This represents a budget surplus. The government earns more than it spends, which can be used to pay down debt, save for future expenses, or reduce taxes. 5. **The Fed's attempt at regulating the business cycle:** The Federal Reserve regulates the business cycle primarily through monetary policy, adjusting interest rates, and controlling the money supply to help manage economic growth and inflation.