Use the Following List of Modern Macroeconomic Theories in Order

question 51

Multiple Choice

Use the following list of modern macroeconomic theories in order to describe the following statement: Lower tax rates and less government intervention in the private economy is the only way to stimulate saving,investment,and productivity.

• A)Keynesian economics
• B)Monetarism
• C)The theory of rational expectations
• D)New classical economics
• E)Supply-side economics

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Definitions:

Fiscally Dependent

A term referring to entities that rely on a higher level of government for financing, approval of budget, or financial decision-making authority.

Public Institution

An organization established by the government to serve the public’s interest, typically funded by public money.

Enterprise Fund

A fund used by a government to account for operations financed and operated in a manner similar to private business enterprises, where the intent is that the costs of providing goods or services to the public on a continuing basis be financed or recovered primarily through user charges.

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting.