Suppose the United States pursued an expansionary fiscal policy to stimulate its economy and eliminate a recession. The crowding-out effect suggests that:
A. net exports would increase, thus increasing aggregate demand and partially reinforcing the fiscal policy.
B. private investment would decrease, thus increasing aggregate demand and partially offsetting the fiscal policy.
C. private investment would decrease, thus decreasing aggregate demand and partially offsetting the fiscal policy.
D. net exports would increase, thus decreasing aggregate demand and partially offsetting fiscal policy.
Answer: C
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What is most likely to happen to the cost of owning and operating a golf course in a large city when the population grows?
A) The cost will decline because the course will be used closer to its capacity. B) The cost will not change as long as no attempt is made to enlarge the course. C) The cost will rise because the land will become more valuable for other purposes. D) The cost will rise if the course is privately owned but will be unchanged if the course is municipally owned. E) The cost will vary depending on the amount of competition from other courses.
Demand is based on:
a. desires, regardless of ability to pay. b. needs and wants, and the ability to pay. c. what supplies can provide. d. government calculations.
The wage premium in the United States for college graduates over high school graduates has remained constant from 1978 to 2000
a. True b. False Indicate whether the statement is true or false
If we consider one Gini coefficient for the entire population of the world, this coefficient has probably ________ in the last two decades.
A. increased B. fallen to zero C. remained unchanged D. decreased