When a(n) ________ in investment increases consumption and real GDP, part of the increase in expenditure is on ________, not ________ goods and services
A) increase; exports; U.S.-produced
B) decrease; exports ; U.S.-produced
C) increase; imports; U.S.-produced
D) increase; imports; foreign-produced
E) decrease; imports; U.S.-produced
C
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If the net public debt expanded last year, then which of the following most likely occurred during the year?
A) The government's budget was balanced. B) The government's tax collections exceeded its spending. C) The government experienced a budget surplus. D) The government experienced a budget deficit.
Catering to special interest lobbying may distort the government's provision of public goods away from the social optimum
Indicate whether the statement is true or false
In 2009, nominal GDP was $14,050 billion and M1 was $1,587 billion. Velocity was
A. 0.11. B. 8.85. C. 11.30. D. 14.25.
Suppose an excise tax is imposed on product X. We would expect this tax to:
A. decrease the demands for both complementary good Y and substitute product Z. B. increase the demands for both complementary good Y and substitute product Z. C. increase the demand for complementary good Y and decrease the demand for substitute product Z. D. decrease the demand for complementary good Y and increase the demand for substitute product Z.