An increase in government spending will increase the government budget deficit, which tends to increase interest rates, increase saving, crowd out private investment, stimulate capital formation, and slow the level of economic activity
a. True
b. False
B
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Which of the following should be used to compare the incomes of countries with equal population but different unemployment rates?
A) Gross national product B) PPP-based measure of income per capita C) Income per worker D) Exchange rate-based measure of income per capita
When a government mandate sets the rental price of an apartment below the market clearing level, which of the following result?
A) More apartments are rented. B) Landlords attempt to make up for the lower rental income by charging more for security deposits and cleaning fees. C) Landlords discriminate less. D) Landlords address their tenant's requests in a more prompt manner.
Under the EMS, Germany set the system's
A) monetary policy while the other European countries pegged their currencies to the DM. B) fiscal policy while the other European countries pegged their currencies to the DM. C) monetary policy while the other European countries kept their currencies fluctuating relative to the DM. D) fiscal policy while the other European countries kept their currencies fluctuating relative to the DM. E) monetary policy, while other European countries maintained their traditional policies.
Which of the following led to the collapse of the Phillips Curve?
a. Rightward shift in the demand for labor curve b. Leftward shift of the Phillips curve c. Leftward shift of the aggregate supply curve d. Rightward shift of the aggregate demand curve.