Two main reasons that the deficit may increase are:
A. decreases in tax revenues and an increase in government spending.
B. changes in interest rates and unemployment.
C. increases in household spending and decreases in firm spending.
D. decreases in tax revenues and government spending.
A. decreases in tax revenues and an increase in government spending.
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Which school of economics held that individuals and business firms learn, through experience, to instantaneously anticipate the consequences of changes in monetary and fiscal policy?
A. The Keynesians B. The monetarists C. The supply-siders D. The rational expectationists
A venture capital fund buys the __________ of a new company and hopes to profit from __________
A) debt; repayment of the debt at maturity B) debt; interest payments on that debt C) equity; dividends from the equity D) equity; eventual sale of that equity
If the growth rate of multifactor productivity is 2.5, and b = 0.25, k = 4, n = 2, and y = 5, then the growth rate of labor productivity is
A) 3.0. B) 8.0. C) 2.0. D) 2.5.
Firms are willing to change the aggregate quantity of output supplied based on price in:
A. the short run only. B. the long run only. C. both the short and long run. D. Price does not affect the quantity that firms supply.