According to the Ricardo-Barro effect
A) the government budget has no effect on the real interest rate.
B) a government budget deficit crowds out private investment.
C) financing government spending with taxes has a smaller effect on private investment than financing through government borrowing.
D) None of the above answers are correct.
A
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What are correct incentives designed to eliminate?
What will be an ideal response?
Other things being equal, the effect of a decrease in the price of DVDs on the market for DVD players is a(n):
a. leftward shift in the demand curve for DVD players. b. upward movement along the demand curve for DVD players. c. rightward shift in the demand curve for DVD players. d. downward movement along the demand curve for DVD players.
A product with qualities that consumers lack the expertise to assess without assistance is called a(n)
A) search good. B) experience good. C) credence good. D) inferior good.
If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.