Empirical evidence shows that the impact of government budget deficits and surpluses on the equilibrium interest rate is quite large
Indicate whether the statement is true or false
FALSE
You might also like to view...
Oligopoly and monopolistic competition can be described as industries where firms
a. have high barriers to entry b. produce identical goods c. are located near each other d. produce close substitutes e. aspire to become perfect competitors
If a market is narrowly defined, a product is likely to have fewer substitutes and demand for the product will be less elastic
a. True b. False Indicate whether the statement is true or false
Which of these events would cause the consumer price index to overstate the increase in the cost of living?
a. Car makers benefit from a new technology that allows them to sell higher-quality cars to consumers with no increase in price. b. Energy prices decrease, and consumers respond by buying more gas and electricity. c. A new good is introduced that renders cellular telephones inferior and obsolete. d. All of the above are correct.
The formal recognition of the threat to the European Union allowed for ________ because the systemic risk clauses of Articles 123 and 125 were invoked.
A. cross-national bailouts B. purchase of debt by the European Central Bank C. tax cuts D. increases in spending