An increase in government spending lowers interest rates and increases the rate of investment in new capital
Indicate whether the statement is true or false
FALSE
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Suppose a restaurant that is highly profitable during the summer months is unable to cover its total cost during the winter months. If it wants to maximize profits, the restaurant should
a. shut down during the winter, even if it is able to cover its variable costs during that period. b. continue operating during the winter months if it is able to cover its variable costs. c. go a out of business immediately; losses should never be tolerated. d. lower its prices during the summer months.
If the Fed wished to decrease inflation, it could:
A. increase the reserve requirement or conduct an open market sale. B. increase the reserve requirement or conduct an open market purchase. C. decrease the reserve requirement or conduct an open market sale. D. decrease the reserve requirement or conduct an open market purchase.
What are three policy options for dealing with pure monopolies that are entrenched and inefficient?
What will be an ideal response?
When the United States is described as having a dual system of health care, this means that:
A. government provides basic health insurance for all Americans and private insurance covers services beyond the basic level. B. high-quality care is provided in urban areas, but care in rural areas is of poor quality. C. those Americans with good insurance or substantial wealth receive world-class health care, while those without insurance receive no or low-quality health care. D. the high-risk segment of the population is required to have health insurance, while the low- risk sector is not.