If personal taxes are cut temporarily, the resulting
a. increase in personal saving would be larger than if they were cut permanently.
b. decrease in personal saving would be larger than if they were cut permanently.
c. decrease in personal saving would be smaller than if they were cut permanently.
d. increase in personal saving would be smaller than if they were cut permanently.
d
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When the price of one good changes, while the prices of all others stay the same:
A. the change in relative prices is reflected in a change in the slope of the budget constraint. B. the change in relative prices is reflected in a change in the marginal utility per dollar spent on each good. C. the change in relative prices can be thought of as a change in the opportunity costs of each good. D. All of these statements are true.
What does it mean to say the United States has a dual banking system?
What will be an ideal response?
Which of the following correctly describes the trend in the federal budget during the 1980s? a. Federal spending declined relative to GDP, while federal revenues rose relative to GDP. b. Federal spending rose relative to GDP, while federal revenues declined relative to GDP. c. Balanced budgets were passed through cooperation between the President and Congress. d. The dollar depreciated,
thereby lowering the deficit. e. The budget deficit decreased and then disappeared, turning into a surplus in the 1980s.
In a closed economy, if Y is 10,000, T is 1,000, G is 3,000, and C is 5,000, then
a. the government has a budget surplus and investment is 1,000 b. the government has a budget surplus and investment is 2,000 c. the government has a budget deficit and investment is 1,000 d. the government has a budget deficit and investment is 2,000