In developing countries, government expenditure levels are most closely related to:

A. what will bring about regime change.
B. considerations about what will keep the existing government in power.
C. what activist fiscal policy is necessary to achieve potential output.
D. what is necessary to achieve long-term macroeconomic objectives.


Answer: B

Economics

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Determine how each of the following situations would affect the demand for current consumption, the supply of current consumption, and the interest rate.

(i) Cuban immigrants, who own no capital of their own, arrive in the country. (ii) A drought lowers farmers' productivity this year, but rainfall levels are expected to return to normal next year. (iii) Scientists announce that a new lubricant that will double engine life will be available next year.

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Indicate whether the statement is true or false

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The production possibilities curve represents the fact that:

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Economics