In the actual economy, households
a. spend all of their income.
b. divide their income among spending, taxes, and saving.
c. buy all goods and services produced in the economy.
d. Both (a) and (c) are correct.
b
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The largest and fastest-growing category of federal government expenditures is
A) transfer payments. B) grants to state and local governments. C) interest on the national debt. D) national park spending.
When testing joint hypothesis, you should
A) use t-statistics for each hypothesis and reject the null hypothesis is all of the restrictions fail. B) use the F-statistic and reject all the hypothesis if the statistic exceeds the critical value. C) use t-statistics for each hypothesis and reject the null hypothesis once the statistic exceeds the critical value for a single hypothesis. D) use the F-statistics and reject at least one of the hypothesis if the statistic exceeds the critical value.
As long as wage increases do not exceed labor productivity growth rates, a stable price level should be the result
a. True b. False Indicate whether the statement is true or false
If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real risk-free interest rate and quantity of real loanable funds per time period if there is an increase in the real saving and a decline in business investment?
a. The real risk-free interest rate falls and the quantity per time period rises. b. The real risk-free interest rate falls and the quantity per time period is uncertain. c. The real risk-free interest rate does not change and the quantity per time period rises. d. The real risk-free interest rate is uncertain and the quantity per time period rises. e. The real risk-free interest rate is uncertain and the quantity per time period is uncertain.