In 1945–52, the records show that falling price levels stimulated increases in real Gross National Product (GNP)
Indicate whether the statement is true or false
False
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When the government's outlays equal its tax revenues, then the budget
A) is balanced. B) could be either in surplus or deficit. C) is legal only because expenditures equal tax revenues. D) is in surplus. E) is in deficit.
If you deposit $20,000 in cash into a demand deposit account at a bank that faces an 18 percent required reserve ratio the result will be:
a. the bank will add $3,600 to its excess reserves. b. the bank will add $16,400 to its excess reserves. c. the bank will add $16,400 to its total reserves. d. the bank will add $20,000 to its excess reserves.
People go to the bank more frequently to reduce currency holdings when inflation is high. The sacrifice of time and convenience that is involved in doing that is referred to as
a. inflation-induced tax distortion. b. relative-price-variability cost. c. shoeleather cost. d. menu cost.
How is a cheeseburger classified?
a) excludable and rival in consumption b) excludable and nonrival in consumption c) nonexcludable and rival in consumption d) nonexcludable and nonrival in consumption