If monetary policy is unchanged, the outstanding national debt will increase whenever
A. government tax receipts exceed government spending.
B. government spending exceeds government tax receipts.
C. Social Security tax receipts exceed Social Security benefit payments.
D. there is a surplus in the federal budget.
Answer: B
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Quantitative easing is likely to lead to a(n) ________
A) increase in unemployment rate B) decrease in the price level C) increase in the federal funds rate D) decrease in the federal funds rate
The benefit to employers of deferred payments is that
A) adverse selection is eliminated. B) employers cannot engage in any opportunistic behavior. C) these payments raise the cost of being fired, so more monitoring is needed. D) these payments raise the cost of being fired, so less monitoring is needed.
A barter economy is different from a money economy in that a barter economy
A. encourages specialization and division of labor B. involves higher costs for each transaction C. eliminates the need for a double coincidence of wants D. has only a few assets that serve as a medium of exchange E. promotes market exchanges
The choice between increasing government spending and cutting taxes often is related to
A) what an economist believes the value of both the tax multiplier and the government spending multiplier are. B) what an economist believes the right size and scope of government might be. C) whether an economist believes that government spending leads to complete crowding out. D) a and b E) all of the above