Which of the following explains why elected representatives will find borrowing to be an attractive method of financing current government programs?
a. the shortsightedness effect
b. pork-barrel politics
c. the invisible hand principle
d. the public goods argument for government spending programs
A
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A nation's saving equals its ________ income less its spending on ________.
A. real; investment B. nominal; net taxes C. nominal; investment D. current; current needs
Which of the following is NOT a flow variable?
A) saving B) consumption C) investment D) savings
Which of the following claims is most likely to suffer from reverse causality?
A) Higher income increases consumption. B) Relatively wealthy people tend to be relatively healthy. C) More hours of study is likely to lead to better results. D) Crime rate is seen to be lower in countries having a higher level of poverty.
Which of the following decreases the official U-3 unemployment rate?
A) Workers leave the labor force. B) More women enter the labor force and seek jobs. C) Young people graduate from college and start to look for their first full-time job. D) None of the above because they all increase or do not change the unemployment rate.