Based on the graph showing the effects of a government budget deficit, how would a budget deficit influence the equilibrium quantity of saving and investment?
a. It would create a higher equilibrium quantity of saving and investment.
b. It would create a lower equilibrium quantity of saving and investment.
c. It would have no influence on the equilibrium quantity of saving and investment.
d. It would drive the equilibrium quantity of saving and investment to zero.
b. It would create a lower equilibrium quantity of saving and investment.
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If the economy has a structural deficit of $25 billion and a cyclical deficit of $75, we can conclude that the current budget deficit is ________ billion
A) $75 B) $25 C) $0 D) $50 E) $100
_____ refers to actions that one party in a transaction takes based on his private information and that affect the payoff to the other party
A) Negative externalities B) Moral hazard C) Positive externalities D) Bargaining
The fact that voters perceive their votes as unlikely to actually change the outcome of an election causes
a. voters to have little incentive to become informed about candidates and political issues. b. voters to spend a great deal of effort becoming informed about candidates and political issues. c. the percent of people who actually turn out to cast a vote on election day to be very high. d. people to be extremely reluctant to "waste" their votes on a third-party candidate.
Developing countries have a high living standard because of high human and physical capital per worker
Indicate whether the statement is true or false