Contractionary fiscal policy will lead to an increase in government borrowing.
a. true
b. false
Answer: b. false
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Historically, U.S. federal expenditures have ________ as a percentage of GDP
A) remained fairly stable B) increased dramatically C) slowly declined D) been extremely volatile
Advertising claiming superior quality of a product makes its demand
a. More elastic b. Less elastic c. Perfectly elastic d. None of the above
In general, the larger the price elasticity:
a. the smaller the responsiveness of price to changes in quantity. b. the smaller the responsiveness of quantity to changes in price. c. the larger the responsiveness of price to changes in quantity. d. the larger the responsiveness of quantity to changes in price.
What is the main reason for the failure of import-substitution strategies to generate rapid economic growth?
a. Deteriorating terms of trade b. Scarce natural resources c. Inefficient allocation of resources d. Lack of self-interested behavior by entrepreneurs e. Insufficient subsidies to domestic producers