When the government budget deficit rises, national saving is reduced, interest rates rise, and investment falls
a. True
b. False
Indicate whether the statement is true or false
True
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For most macroeconomists
A) gross national income and gross national product are the same. B) gross national income exceeds gross national product. C) gross national product exceeds gross national product. D) it is hard to tell whether gross national income equal gross national product. E) gross national product is much more important than gross national income.
In a closed economy, if Y, C, and T remained the same, a decrease in G would
a. reduce private saving and public saving. b. increase private saving but not public saving. c. increase public saving but not private saving. d. increase neither private nor public saving.
Rent seeking refers to unproductive activity in the pursuit of profit.
Answer the following statement true (T) or false (F)
Since there are long waiting lists for tickets to events that regularly occur (Duke basketball, the August NASCAR race in Bristol, Tennessee, etc.), a profit-maximizing promoter might
A. lower ticket prices. B. eliminate seating. C. eliminate the event altogether. D. increase seating.