Direct expenditure offsets are
A. the discretionary changing of government expenditures to achieve a higher employment level.
B. the decrease in spending in the private sector in areas in which the government is competing.
C. the same as the Ricardian equivalence theorem.
D. the decrease in planned investment that occurs as the result of an increase in interest rates.
Answer: B
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Refer to Figure 7-5. If consumers paid the full price of medical services, the equilibrium quantity would be
A) 400. B) 800. C) 1,200. D) > 1,200.
The theory of purchasing power parity
A) extends the law of one price to a group of goods. B) assumes that most changes in nominal exchange rates are the result of changes in real exchange rates. C) assumes that inflation rates are roughly the same in most countries. D) was valid only under the gold standard.
Albert and Betty hire Christine and David to play music at their wedding. Elizabeth, who lives behind the church, cannot study because of the loud music. The third party is
a. Albert b. Betty c. Christine d. David e. Elizabeth
A firm operating in a perfectly competitive industry will continue to operate in the short run but earn losses if the market price is less than that firm's average variable cost but greater than the firm's average fixed cost
a. True b. False Indicate whether the statement is true or false