Which is not a reason Usury laws are often politically popular?
A. Few people sympathize with banks and other lenders who are suspected of price gouging.
B. Consumers are in favor of the lower lending rates.
C. The lower rates allow people to borrow more.
D. Lenders, not the Usury laws, are often blamed by people who do not get loans.
Answer: C
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What is the main difference between classical economists' ideas about economic growth versus what modern evidence suggests?
What will be an ideal response?
If net taxes were lowered from $5,000 to $1,000 . the marginal propensity to consume is 0.75, and autonomous consumption spending is $10,000 . by how much would consumption increase?
a. $3,000 b. $1,250 c. $7,500 d. $3,750 e. $750
Which of the following is an example of political action that reflects the shortsightedness effect?
a. budget surpluses b. the promise of future benefits without providing for their funding c. spending on roads and highways d. spending on programs that transfer income from the rich to the poor
If national income accountants fail to make an adequate adjustment for increases in the quality of goods and services over time,
a. increases in real GDP will understate the growth rate of real output. b. increases in real GDP will overstate the growth rate of real output. c. the GDP deflator will overstate the rate of inflation. d. the GDP deflator will understate the rate of inflation. e. both a and c are correct.