Public choice analysis explains that
a. politicians have strong incentives to favor deficit finance over tax finance.
b. policy makers believe the budget should be balanced except in times of war.
c. the legislator who is a spending "watch dog" can save her constituents a substantial amount of tax money.
d. given the way Congress operates, the apparent popularity of deficit financing is surprising.
A
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Because an oligopoly includes a small number of firms, there is the possibility of ________ rather than ________, which can ________ profits for each of the firms.
A) competition; cooperation; increase B) cooperation; competition; increase C) competition; cooperation; decrease D) cooperation; competition; decrease
For demand function P = 24 - 6Q, demand
A. has unitary elasticity at all points on the function. B. is elastic at price 16. C. is elastic at price 12. D. is elastic at price 2.
If the Federal Reserve decreases the money supply, then initially there is a
a. shortage in the money market, so people will want to sell bonds. b. shortage in the money market, so people will want to buy bonds. c. surplus in the money market, so people will want to sell bonds. d. surplus in the money market, so people will want to buy bonds.
Empirical evidence points to the fact that financial crises:
A. are newsworthy but have no impact on economic growth. B. can have a positive impact on economic growth as weak borrowers are weeded out. C. have a negative impact on economic growth for years. D. have a negative impact on economic growth only for the year of the crisis.