A balanced federal budget
a. cannot have an expansionary effect on the economy.
b. can have an expansionary effect on the economy if the government finances spending with taxes on idle funds.
c. can have an expansionary effect on the economy if the government finances spending with taxes on funds that would have been used for private consumption.
d. can have an expansionary effect on the economy if the government finances spending with taxes on funds that would have been used for private investment.
b. can have an expansionary effect on the economy if the government finances spending with taxes on idle funds.
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The aggregate expenditure (AE) curve
A) includes expenditures by domestic residents only. B) does not include expenditures on either imports or exports. C) includes expenditures on foreign as well as domestic goods. D) includes all expenditures on domestic goods. E) adds expenditures on imports because they are consumed in the nation and subtracts expenditures on exports because they are consumed abroad.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.
Firms share technology with rivals,
A. in order to better compete with their rivals. B. in order to help out when their rivals are in trouble. C. to share the substantial risks of innovation. D. because they are required to by law. E. in order to pass false information to their rivals in order to drive them out of business.
Using Scenario 1, calculate the total cost of pollution when both steel companies are allowed to pollute only one million gallons of thermal water each and the right is not transferable or tradable
What will be an ideal response?