In fiscal year 2008, the U.S. government ran a deficit of about $459 billion. In fiscal year 2009, the government ran a deficit of about $1,413 billion. Other things the same, this change would be expected to have
a. decreased interest rates and investment.
b. decreased interest rates and increased investment.
c. increased interest rates and investment.
d. increased interest rates and decreased investment.
d
You might also like to view...
In a market-based economy, only the government can reduce economic uncertainty
Indicate whether the statement is true or false
Refer to Figure 4-8. Suppose that instead of a rent ceiling, the government imposed a price floor of $2,000 per month for apartments. What is the value of the deadweight loss after the imposition of the price floor?
A) $50,000 B) $125,000 C) $175,000 D) $260,000
Everything else held constant, when the federal funds rate is ________ the interest rate paid on reserves, the quantity of reserves demanded rises when the federal funds rate ________
A) above, rises B) above, falls C) below, rises D) below, falls
In a market with a bilateral monopoly:
A) there is a single buyer and a single seller. B) there are many buyers and a single seller. C) there is a single buyer and few sellers. D) there are a few buyers and many sellers. E) there are a few buyers and a few sellers.