If there is no Ricardo-Barro effect, a government budget deficit will ________ the equilibrium real interest rate and ________ the equilibrium quantity of investment
A) raise; decrease
B) raise; increase
C) lower; increase
D) not change; not change
E) lower; decrease
A
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Adam Matsumi is an attorney who can charge legal fees above the competitive level because entry of new competitors is made more difficult by the need to hold a(n)
a. state license b. patent c. essential resource d. economy of scale e. copyright
The cross elasticity between two goods, X and Y, is positive. From this, we can conclude that goods X and Y are:
a. substitute goods. b. complementary goods. c. unrelated goods. d. inferior goods. e. normal goods.
When the dollar depreciates, the prices of imported inputs
a. fall and aggregate supply shifts outward. b. fall and aggregate supply shifts inward. c. rise and aggregate supply shifts outward. d. rise and aggregate supply shifts inward.
The Standard Oil trust
A. behaved "badly" according to the Supreme Court. B. was broken up in 1890. C. was forced by the Supreme Court to give payments on every shipment of oil it refined to its rivals. D. was a multinational corporation.