An individual having an unusually bad year will be on her short-run consumption function at a point ________ her long-run consumption function, with an unusually ________ saving ratio
A) above, high
B) above, low
C) below, high
D) below, low
B
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New money is created in the U.S. economy by
A) increased federal government expenditures. B) banks that create checkable deposits. C) the U.S. Treasury. D) U.S. Department of Mint. E) the U.S. Congress.
As a method of resource allocation, force
A) is not important. B) plays a crucial negative role. C) plays a crucial positive role. D) plays a crucial role for both good and ill.
Which of the following policies is most likely to encourage innovation, higher quality goods, and lower prices? I. Encouraging public-private partnerships II. Passing government regulations to reduce business failures and protect consumers III. Reducing barriers that limit entry of firms into new and existing markets
a. II and III b. III only c. I only d. I and II
When the economy slows down and national income falls, the government will have ________ tax revenue to fund programs.
A. more B. less C. about the same D. a rapid increase in