In the long run,
a. large government budget deficits cause productivity to increase, thereby leading to inflation
b. large government budget deficits drive down interest rates and reduce investment spending
c. large government budget surpluses mean reductions in the money supply
d. changes in the government budget deficit have no effect on the capital stock
e. large government budget deficits drive up interest rates and reduce investment spending
E
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If demand is elastic, a rise in price will decrease total expenditure.
Answer the following statement true (T) or false (F)
What generates economic growth?
What will be an ideal response?
Describe the difference between the simple quantity theory of money and the equation of exchange
The problem of determining what goods and services society should produce:
A) exists because we can produce more than we need or want. B) exists because there are not enough resources to provide all the goods and services that people want to purchase. C) would not exist if all goods and services were scarce. D) would not exist if government owned all of the resources.