A contractionary fiscal policy will reduce a government budget deficit or increase a government budget surplus and lower the quantity of bonds the government must sell.

a. true
b. false


Ans: a. true

Economics

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The formula for the CPI is

A) (Cost of CPI market basket at base period prices ÷ Cost of CPI market basket at current period prices) × 100. B) (Cost of CPI market basket at current period prices ÷ Cost of CPI market basket at base period prices) × 100. C) (Cost of CPI market basket this year × Cost of CPI market basket at base period prices) × 100. D) (Cost of CPI market basket this year × Cost of CPI market basket at base period prices) ÷ 100. E) (Cost of CPI market basket at current period prices ÷ Cost of CPI market basket at next year's prices) × 100.

Economics

What was the least important reason for the failure of the Virginia Company?

a. Difficulty in finding good crops to grow b. The Company's employees had unforeseen labor alternatives. c. There was a relatively small incentive for employees to work hard. d. The death rate was much higher than they expected.

Economics

Which of the following best describes the relationship between economic freedom and real per capita Gross Domestic Product (GDP)?

What will be an ideal response?

Economics

A decrease in lump-sum taxes will

A. shift the consumption function upward. B. shift the consumption function downward. C. make the consumption function steeper. D. make the consumption function flatter.

Economics