Based on our understanding of the model presented in Chapter 3, we know with certainty that an equal and simultaneous increase in G and T will cause
A) an increase in output.
B) no change in output.
C) a reduction in output.
D) an increase in investment.
A
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Because government agencies lack the kind of competition found in the marketplace, they also can lack:
a. profits. b. efficiency. c. cohesion. d. accountability.
In the Classical model, a decrease in saving will result in saving being __________ than investment which will cause the interest rate to __________
A) greater; rise B) greater; fall C) less; rise D) less; fall
In which of the following cases are disputes more likely to be settled by negotiations than by court cases?
a. When the parties involved are risk averse b. When time is not an important factor c. When court costs are low d. When parties have asymmetric beliefs about facts
An individual's payment into Social Security is kept in his or her account so that the individual retirement benefit he or she receives is drawn from that account
Indicate whether the statement is true or false