If the Ricardo-Barro effect occurs, an ________ in saving finances the government budget deficit and the real interest rate ________
A) increase; remains the same
B) decrease; increases
C) increase; falls
D) decrease; remains the same
A
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What are two ways that governments can prevent banking panics?
What will be an ideal response?
Which of the following would cause the unemployment rate as measured by the Bureau of Labor Statistics to understate the true degree of joblessness in the economy?
A) people employed in the underground economy B) unemployed persons who falsely report themselves as actively looking for a job C) retired people who have no intention of returning to work D) people with part-time jobs who would prefer to be working full time
Each of the following would decrease the supply of U.S. dollars, shifting the supply curve for dollars to the left, EXCEPT:
A. a decreased preference for foreign-made goods. B. a decrease in the real interest rate on foreign assets. C. a depreciation of the U.S. dollar relative to other currencies. D. a decrease in U.S. real GDP.
A perfectly price elastic demand curve will be a ________ line.
A. vertical B. horizontal C. positively sloped D. negatively sloped