If there is an increase in government spending that is financed by issuing bonds, then
a. interest rates should rise which increases private investment.
b. interest rates will remain the same unless taxes are reduced as well.
c. interest rates should fall which increases private investment.
d. interest rates should rise which decreases private investment.
e. None of the above.
D
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Which of the following faces a horizontal demand curve?
a. A monopolistic firm b. An oligopolistic firm c. A perfectly competitive firm d. A monopolistically competitive firm e. A monopsonist firm
Looking at a Lorenz curve, the first quintile viwed from the origin records the
a. the income held by the richest 50 percent of population b. the income held by the richest 20 percent of population c. the income held by the poorest 50 percent of population d. the income held by the poorest 20 percent of population e. the wealth held by the poorest 10 percent of population
Which set of changes is definitely predicted to lower Real GDP in the short run?
A) Interest rates rise and wage rates fall. B) Interest rates rise and there is a beneficial supply shock. C) Interest rates rise and labor productivity increases. D) Interest rates rise and individuals expect lower (future) incomes. E) c and d
The formal study of economics began when Adam Smith (1723-1790) published his famous book The Wealth of Nations in 1776. In the first chapter of The Wealth of Nations, Smith introduces the idea of the division of labor. Define "division of labor" and illustrate with an example.
What will be an ideal response?