If the government increases taxes while holding expenditures constant,
A) the bond supply curve will shift to the left and the equilibrium interest rate will fall.
B) the bond supply curve will shift to the right and the real interest rate will fall.
C) government borrowing will be increased.
D) the government's deficit will increase.
A
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The capital and financial account is the record of
A) the nation's imports and exports of capital goods. B) foreign investment in the nation minus the nation's investment abroad. C) a nation's international trading, borrowing, and lending. D) changes in the government's holdings of foreign currency. E) payments for imports, receipts for exports, net interest, and net transfers.
When a perfectly competitive firm produces the profit-maximizing output and it is at its shutdown point, the firm's ________
A) marginal revenue equals its average fixed cost B) total revenue equals its total variable cost C) marginal cost is less than its average variable cost D) total revenue is less than its total variable cost
Business people often use “hunches” and intuition to make decisions regarding what to produce.
Answer the following statement true (T) or false (F)
When the cross elasticity of demand for two services is positive, then these services are __________.
A. complements B. substitutes C. both complements and substitutes D. neither complements nor substitutes