The immediate effect of a purchase of a government bond on the gross domestic product (GDP) is_____.?
a. a decrease in consumption
b. an increase in government spending
c. an increase in investment
d. a decrease in investment
e. nonexistent, since no real goods and services have been produced
Answer: e. nonexistent, since no real goods and services have been produced
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Welfare caseloads tend to fluctuate with
a. business cycles. b. weather. c. stock markets. d. minimum wage rates.
Explain how stock options can ensure compatibility between the interest of stockholders and managers.
What will be an ideal response?
The price paid by buyers in a market will increase if the government (i) increases a binding price floor in that market. (ii) increases a binding price ceiling in that market. (iii) decreases a tax on the good sold in that market
a. (ii) only b. (iii) only c. (i) and (ii) only d. (i), (ii), and (iii)
National debt is also known as
A. private debt. B. public debt. C. private saving. D. public saving.