What happens to the interest rate when there is a decrease in the government’s budget surplus?
a. The interest rate will decrease.
b. The interest rate will increase.
c. The interest rate will either increase or decrease.
d. The interest rate will remain the same.
b. The interest rate will increase.
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Along an indifference curve for goods X and Y, the vertical and horizontal axes measure the:
a. prices of X and Y. b. total utilities of X and Y. c. quantities of X and Y. d. marginal utilities of X and Y.
Which of the following makes long-term low-interest loans to LDCs?
a. International Monetary Fund (IMF) b. Agency for International Development (AID) c. World Bank d. New International Economic Order (NIEO)
If an economy keeps increasing its capital stock, then over time its production possibilities curve will:
A. not move. B. shift to the left. C. shift to the right. D. disappear because scarcity ceases to exist.
Network externalities
A) can only exist when there are economies of scale. B) prevent the dominance of a market by one firm. C) exist when the usefulness of a product increases with the number of consumers who use it. D) are created when celebrity endorsements of products lead to a surge in the demand for those products.