To you people bitching about question 30, look at what it is asking. There are two words in the question that made me realize what the right answer was: "Which of the following fiscal policy combinations would a government most likely follow to stimulate economic activity when the economy is in a severe recession?"
Cutting or freezing spending isn't going to stimulate the economy. Yes, it is the smartest thing to do, but my quiz doesn't phrase the question as "What is the smartest thing for government to do?" But maybe I just got a different test. Plus, no government in the world would do that if it explicitly wants a boost during a severe recession.
Also, can someone help me out with #33, I can understand why the answer is what it is (D.), but I don't know why choice A is wrong.
33) If taxes equal government spending, then:
A. government debt is zero
B. printing money no longer causes inflation
C. government is not helping anybody
D. tax per person equals government spending per person
E. tax loopholes and special-interest spending are absent
I'm not arguing or complaining, but just looking for a little education on that one.