If a small open economy reduces its budget deficit, the result will be:
A) a lower world real interest rate, but no change in the domestic real interest rate
B) a lower domestic real interest rate, but no change in the world real interest rate
C) lower domestic and world real interest rates
D) no change in either the domestic or world real interest rate
D
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The benefit of tax deferred savings accounts is_____
a. that it helps avoid some of the double taxation of saving b. that it helps taxpayers avoid bracket creep c. that it increases government tax revenue in the long run d. that it stimulates aggregate demand
Interest is
a. the price paid for early availability of funds. b. the risk of extending a loan. c. an unnecessary premium charged for the use of money. d. the price one must pay when she does not save.
Before the early 1970s, we ran a positive trade balance
A. in both merchandise and services. B. in neither merchandise nor services. C. in merchandise, but not in services. D. in services, but not in merchandise.
Which of the following will most likely occur under a system of clearly defined and enforced private property rights?
What will be an ideal response?