An increasing budget deficit stimulates the economy
A. by increasing taxes.
B. in the long run only.
C. in the short run only.
D. by decreasing spending.
Answer: C
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Consumers derive consumer surplus whenever
a. the monetary value of total utility equals total expenditure b. the monetary value of total utility is greater than total expenditure c. the monetary value of total utility is less than total expenditure d. marginal utility is greater than total utility e. marginal utility is less than total utility
The aggregate-demand curve shows the
a. quantity of labor and other inputs that firms want to buy at each price level. b. quantity of labor and other inputs that firms want to buy at each inflation rate. c. quantity of domestically produced goods and services that households want to buy at each price level. d. quantity of domestically produced goods and services that households, firms, the government, and customers abroad want to buy at each price level.
Economists generally assume that faster economic growth is negative for society.
Answer the following statement true (T) or false (F)
The marginal cost of providing another viewer with access to HBO is zero. Since only people who pay for HBO can watch it:
A. HBO will not be profitable in the long run. B. more than the socially optimal number of people will have access HBO. C. access to HBO is nonexcludable. D. fewer than the socially optimal number of people will have access to HBO.