In the short run, the government deficit spending will most likely

A) raise the unemployment rate
B) lower the inflation rate
C) raise real interest rates
D) lower private savings
E) raise net exports


Answer: C) raise real interest rates

Economics

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According to proponents of behavioral economics, because every possible choice cannot be considered, an individual will tend to fall back on methods of making decisions that are simpler than trying to sort through every single possibility, known as

A) rules of thumb. B) rational options. C) irrational choices. D) normative decisions.

Economics

If the economy is suffering a recession, inventories are probably falling

a. True b. False Indicate whether the statement is true or false

Economics

The value of output produced in the United States in current prices measures:

A.) GDP growth. B.) Real GDP. C.) Per capita GDP. D.) Nominal GDP

Economics

Payments to households that do not require anything in exchange are called

A) transfer payments. B) government purchases. C) consumption expenditures. D) investment expenditures.

Economics