When federal government expenditures exceed tax receipts, the Treasury must
A) expand the money supply.
B) raise taxes.
C) reduce spending.
D) sell bonds.
D
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Elasticity rises as price falls along a linear, downward-sloping demand curve
a. True b. False
The median voter model implies that: a. most voters will have about the same preferences for goods and services provided through government
b. a candidate may adopt more extreme views when seeking her party's nomination than during the general election. c. political voting will be as economically efficient as voting with dollars in competitive markets. d. none of the above
Other things the same, if the price level rises, people
a. increase foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange increases. b. increase foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange decreases. c. decrease foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange increases. d. decrease foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange decreases.
According to public choice theory, low voter turnouts may be the result of cost-benefit calculations on the part of voters
Indicate whether the statement is true or false