Some economists believe that financing deficit spending by increasing taxes will lead to a lower level of national consumption and a higher level of national savings than deficit spending. The reason is
A) that people do not realize that taxes have increased also.
B) the interest rate on the debt will increase.
C) people will forgo private consumption now as society substitutes government goods for private goods.
D) people believe that they can consume the government provided goods and have future generations pay the bill.
C
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The velocity of circulation is equal to
A) the price level multiplied by the quantity of money. B) nominal GDP divided by the quantity of money. C) the quantity of money divided by the price level and then multiplied by real GDP. D) the quantity of money divided by nominal GDP. E) the price level divided by real GDP.
In Figure 6-3(b), as price falls from $15 to $6, total expenditure
A. falls. B. increases. C. remains constant. D. first falls and then increases.
Most businesses in the United States are ________, and the type of business organization that accounts for the LEAST amount of total revenues is ________
A) proprietorships; partnerships B) corporations; proprietorships C) proprietorships; proprietorships D) corporations; partnerships
An increase in the price of pizza will shift the demand curve for pizza to the left
a. True b. False Indicate whether the statement is true or false