If household saving decreases by $4 million, business saving increases by $4 million, and the government budget deficit decreases by $4 million, then private saving ________ and public saving ________.
A. increases; decreases
B. does not change; increases
C. does not change; decreases
D. increases; increases
Answer: B
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A. fall during periods of prosperity, thus increase federal budget deficits. B. rise during periods of prosperity, thus reduce federal budget deficits. C. fall during recessions, thus increase the problem of unemployment. D. rise during recessions, thus increase the problem of unemployment.
Rapidly rising U.S. health care costs have:
A. forced the growth of wages to keep pace. B. encouraged outsourcing. C. caused some employers to use more part-time and temporary workers. D. done all of these.
For developing countries, one of the dangers inherent in the inflows of capital that finance investment is
A. increasing unemployment that accompanies foreign investment. B. rapid outflows of funds that put pressure on exchange rates. C. the deflation that accompanies inflows of foreign capital. D. the inflation that accompanies outflows of foreign capital.
Suppose a tax were imposed on motel rooms in the San Antonio area. If demand were slightly elastic and supply were very inelastic, the tax would be borne
A. entirely by motel owners. B. mainly by motel owners. C. mainly by motel renters. D. entirely by motel renters.