In the long-run framework, deficits reduce:
A. government consumption.
B. investment.
C. taxes.
D. subsidies.
Answer: B
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Tax credits have been provided to employers for hiring targeted groups
Indicate whether the statement is true or false
Demand for a good is inelastic if:
A. total revenue decreases when price increases. B. the quantity effect outweighs the price effect of a price increase. C. the absolute value of price elasticity is greater than 1. D. total revenue increases when price increases.
An increase in a country's saving rate permanently raises its productivity
a. True b. False Indicate whether the statement is true or false
According to the maximin criterion, income should be transferred from the rich to the poor as long as it
a. raises the well-being of the least fortunate. b. does not alter incentives to work and save. c. promotes an equal distribution of income. d. does not lower the welfare of the elderly.