What is the main argument which explains why an increased public deficit financed tax cut may not result in increased consumption?
A) People will increase savings to "finance" debt repayment by future generations.
B) People will increase consumption to "finance" debt repayment by future generations.
C) Savings is determined by uncertain events, the timing of future illnesses and death.
D) Savings is determined by certain events, the timing of future illnesses and death.
C
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If there are no interventions by finance ministers or control banks in the international market, then
A) the current account and the capital account must sum to zero. B) the current account will be greater than the capital market. C) the capital market will be greater than the current account. D) the capital market will equal the current account.
What are the main characteristics of a public good? Why does the government produce public goods rather than allowing firms in the competitive market to do so?
The welfare rolls today are
A. much higher than they were in 1994. B. A little higher than they were in 1994. C. a little lower than they were in 1994. D. much lower than they were in 1994.
Technology
A. does not have an effect on the amount of a good a society can produce with its given resources. B. is the recipe for combining land, labor, physical capital, and entrepreneurship to produce a good. C. only changes if resources change. D. is constantly changing at every point along a production possibilities curve.