. When you are faced with a lack of information concerning a purchase, you should
A. consider the opportunity cost of gaining more information.
B. always seek out the most information you can before making a purchase.
C. not make the purchase without complete information.
D. None of these statements is true.
A. consider the opportunity cost of gaining more information.
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The basic idea behind the multiplier is that an increase in
a. GDP brings about an additional, larger increase in GDP. b. consumer spending causes a larger increase in investment spending. c. government spending causes a larger increase in tax revenues. d. spending will cause an even larger increase in equilibrium GDP.
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and the monetary base in the context of the Three-Sector-Model? a. The GDP Price Index rises and monetary base
falls. b. The GDP Price Index and monetary base fall. c. The GDP Price Index falls and monetary base rises. d. The GDP Price Index and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Since 1929, total government taxes as a percentage of GDP:
a. climbed from 10 percent to about 30 percent. b. remained close to 30 percent. c. climbed from 30 percent to about 50 percent. d. climbed from 15 percent to about 50 percent.
Which of the following best describes the federal budget during the 1990s?
A. The relative size of the deficit fell. B. There was a steady downward trend in the relative size of the deficit. C. The absolute size of the deficit fell. D. The absolute size of the debt grew to over $5 trillion.