In the late 1990s, the U.S. federal government had a budget surplus. If there is no Ricardo-Barro effect, the budget surplus ________ the real interest rate and ________ the equilibrium quantity of investment
A) did not change; did not change
B) lowered; increased
C) raised; increased
D) raised; decreased
E) lowered; decreased
B
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The production function Y = AKbN1-b written in terms of growth rates is
A) y = a - bk - (1 - b)n. B) y = a + bk + (1 - b)n. C) y = a - bk + (1 - b)n. D) y = a + bk - (1 +b)n.
The income approach to measuring GDP includes:
a. compensation for employees, net interest, rent, net profits, and indirect business taxes and depreciation. b. compensation for employees, net interest, rent, corporate profit, and transfer payments. c. compensation for employees, net interest, rent, and indirect business taxes. d. compensation for employees, net interest, rent, corporate profits, and capital depreciation. e. compensation for employees, rent, corporate profits, proprietors' income, and transfer payments.
Suppose the demand for calendars increases in November. At the same time, the price of the ink used in the production of calendars increases. In the market for calendars, the equilibrium price rises, but the effect on the equilibrium quantity is ambiguous
a. True b. False Indicate whether the statement is true or false
Suppose the United States unexpectedly decided to pay off its debt by printing new money. Which of the following would happen?
a. People who held money would feel poorer. b. Prices would rise. c. People who had lent money at a fixed interest rate would feel poorer. d. All of the above are correct.