Because of the automatic stabilizers, a decline in the level of economic activity will cause:
A. a reduction in tax revenues collected.
B. a reduction in government expenditures.
C. a greater budget surplus.
D. Congress to vote for a tax cut.
Answer: A
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Portfolio investment can generally travel across borders _________ foreign direct investment can.
A. not as quickly as B. just as quickly as C. more quickly than D. None of these statements is true.
Excess demand occurs:
A. when price is below the equilibrium price. B. when price is above the equilibrium price. C. whenever the market is not in equilibrium. D. whenever the market is in equilibrium.
According to the World View titled "Income Share of the Rich," in which of the following would the top tenth of the population be most likely to receive the highest percentage of the country's income?
A. Japan. B. Germany. C. Haiti. D. The United States.
With expansionary monetary policy, investment, consumption, and net exports all ____________ which results in the AD curve shifting to the ____________ increasing real GDP and the price level.
Fill in the blank(s) with the appropriate word(s).