Which of the following is not an example of in-kind transfers?
A. Medicaid benefits.
B. Housing subsidies.
C. Social Security payments.
D. Food stamps.
Answer: C
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The crowding-out effect is
A) the tendency of expansionary fiscal policy to cause an increase in planned investment but not in planned consumption in the U.S. private sector. B) the tendency of contractionary fiscal policy to cause an increase in planned investment but a decrease in planned consumption in the U.S. private sector. C) the tendency of expansionary fiscal policy to cause a decrease in planned investment or planned consumption in the U.S. private sector. D) the tendency of contractionary fiscal policy to cause an increase in planned investment or planned consumption in the U.S. private sector.
If there is an increase in the expected future U.S. exchange rate, there is
A) an upward movement along the demand curve for dollars. B) a downward movement along the demand curve for dollars. C) a leftward shift of the demand curve for dollars. D) a rightward shift of the demand curve for dollars.
Compared to a tariff, an import quota, which restricts imports to the same amount as the tariff, will leave the country as a whole
A) worse off than a comparable tariff. B) not as bad off as a comparable tariff. C) about the same as a comparable tariff. D) Any of the above can be true.
The 45-degree line equates the level of income measured on the horizontal axis to the level of consumption plus saving measured on the vertical axis
Indicate whether the statement is true or false