The short-run simulative effect of a government budget deficit on real GDP is stronger with ________ financing, since this ________ the crowding out effect of the deficit
A) bond, enhances
B) bond, eliminates
C) money, enhances
D) money, eliminates
A
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Use the following diagram to answer the next question.
The straight line E drawn through the wavy lines would provide an estimate of the
A. natural rate of unemployment. B. recovery trend. C. recession fluctuation. D. economic growth trend.
How does the aggregate demand curve differ from a demand curve for, say, bananas?
What will be an ideal response?
What is meant by the term double taxation? a. The tax on corporations is double the rate paid by other forms of business. b. The tax on corporations is one-half the rate paid by other forms of business. c. Corporations must pay both federal and state taxes. d. Corporate profits are taxed, and that portion of profits distributed as dividends is taxed as personal income
e. The corporation pays taxes on stocks and bonds.
Public goods are unlikely to be provided by the private sector because
A. the exclusion principle does not apply to public goods. B. the production of the good creates negative externalities. C. no one can be excluded from the consumption of the good. D. the consumption of the good creates negative externalities.