A large government debt increases the amount of capital in the economy and thereby increases future incomes and real wages
Indicate whether the statement is true or false
FALSE
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Tomas wants the city to convert a portion of an existing public park to a covered bus stop so it is more convenient to catch a bus to work each day. Michelle wants the city to expand the park so her kids have an even larger place to play outside
In this situation, Tomas's and Michelle's actions A) reflect natural and morally neutral preferences. B) are easy to separate into right and wrong. C) are all about greed and take no one else into consideration. D) have no possible way of resulting in compromise.
If wealthy U.S. consumers save most of their tax cut, this means that, compared to government spending changes,
a. tax changes would have a higher multiplier effect. b. tax changes would have a weaker multiplier effect. c. government spending would have a weaker multiplier effect. d. U.S. consumers would spend all of their tax cut.
Mass marketing involves
A) using all types of media, such as television and radio, to reach as many consumers as possible. B) Internet ads only. C) using direct mailings only. D) lower-cost methods of advertising.
According to the quantity theory of money demand
A) an increase in interest rates will cause the demand for money to fall. B) a decrease in interest rates will cause the demand for money to increase. C) interest rates have no effect on the demand for money. D) an increase in money will cause the demand for money to fall.