When decentralized governmental units operate independently and compete with each other, governments will attract residents and expand their tax base when
What will be an ideal response?
they provide residents with desired services at an attractive tax cost.
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Deflation in the United States would tend to make the exchange value of the dollar depreciate
a. True b. False Indicate whether the statement is true or false
An increase in the nation's wealth, all other factors constant, would cause:
A. the bond supply curve to shift right. B. bond prices to rise and yields to decrease. C. bond prices and yields to increase. D. bond prices to fall and yields to increase.
The cyclical deficit is the portion of the deficit
A) that would exist if the economy were at full employment. B) that does not add to the national debt. C) that is the result of nondiscretionary federal spending. D) created by fluctuations in real GDP. E) that is the result of discretionary federal spending.