The sequence of events following an increase in the federal deficit would be higher interest rates, a(n)
A. depreciating dollar, and a larger current account deficit.
B. depreciating dollar, and a smaller current account deficit.
C. appreciating dollar, and a larger current account deficit.
D. appreciating dollar, and a smaller current account deficit.
Answer: C
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A virtuous cycle occurs
A) when a firm can attract enough buyers initially to increase a product's usefulness to attract even more buyers. B) when lobbyists petition members of Congress to grant a public franchise; the lobbyist then raise money for those Congress members who granted the franchise. C) when monopoly profits are used to create new products for additional monopoly profits. D) when a firm's sales volume reaches a level where the firm can take advantage of economies of scale; thereby reducing the price of the product to further boost its sales.
Why is it misleading to argue that emissions permits are a "license to pollute"?
According to the Phillips curve, policymakers can reduce inflation by
a. contracting aggregate demand. This contraction results in a temporarily higher unemployment rate. b. contracting aggregate demand. This contraction results in a temporarily lower unemployment rate. c. expanding aggregate demand. This expansion results in a temporarily lower unemployment rate. d. expanding aggregate demand. This expansion results in a temporarily higher unemployment rate.
What is the most appropriate test to evaluate whether a government-spending program will improve living standards and lead to higher income levels?
A) The value of the output generated by the government-spending program compared to its opportunity cost B) The total number of jobs created by the program C) The reduction in the rate of unemployment as the result of the spending on the program D) The taxes necessary to finance the program compared to the revenues generated by the additional employment created by the program