Budget deficits lead to ______ interest rates and ______ amounts of saving and investment.

a. lower; smaller
b. lower; larger
c. higher; smaller
d. higher; larger


c. higher; smaller

Economics

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In the economic way of thinking, money is

A) the root of all evil. B) what makes the world go round. C) a general medium of exchange. D) an institution, which tends to increase transaction costs. E) the source of scarcity in commercial society.

Economics

The U.S. Supreme Court ruled that the tax on food processors in the 1933 Agricultural Adjustment Act (AAA) was unconstitutional

Indicate whether the statement is true or false

Economics

If a consumer goes to the store and purchases a DVD player, the shopper is buying both a _____.

(A) Durable and intermediate good. (B) Nondurable and final good. (C) Durable and final good. (D) Nondurable and intermediate good.

Economics

Evidence suggests that education raises the earnings of the workforce mainly by

a. increasing the marginal productivity of labor. b. keeping young people out of the labor force, thereby reducing the supply of labor. c. teaching workers how to demand more pay. d. teaching people to read and write, although education beyond this point does not seem to increase worker productivity.

Economics