Changes in government spending
a. are an indirect component of the expenditures schedule.
b. have a different multiplier effect than changes in business investment spending.
c. are a direct component of the expenditures schedule and have the same multiplier effect as changes in business investment spending.
d. do not have an effect on spending if they are matched by tax changes.
c
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Production points inside the production possibilities frontier
A) are unattainable. B) are attainable only with the full utilization of all resources. C) are associated with unused or misallocated resources. D) result in more rapid growth.
Which of the following statements concerning the distinction between positive and normative economics is TRUE?
A) Positive statements are concerned with what is, while normative statements are concerned with what someone thinks should be. B) Positive statements are concerned with what people think, while normative statements are concerned with what people do. C) Positive statements are true while normative statements are false. D) Positive statements are concerned with what is while normative statements are concerned with what will be.
A budget line represents all combinations of bundles of two goods that give a consumer equal total utility
a. True b. False Indicate whether the statement is true or false
Consider borrowers and lenders who agree to loans with fixed nominal interest rates. If inflation is higher than what the borrowers and lenders expected, then who benefits from lower real interest rates?
a. Only the borrowers benefit. b. Only the lenders benefit. c. Both borrowers and lenders benefit. d. Neither borrowers nor lenders.