Which of the following is true?
a. The resources used by special-interest groups to persuade elected officials to create legislation to increase their wealth are productive to society because they increase real output.
b. The resources used by special-interest groups to persuade elected officials to create legislation to increase their wealth are unproductive to society because they do not increase real output, and usually end up reducing it.
c. Special-interest legislation created through rent-seeking activity usually creates widespread benefits for the rest of the society.
d. Special-interest legislation confers concentrated benefits on one group by imposing concentrated costs on another group.
b
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The ultimate source of liquidity in a modern industrial economy is the
A) government Treasury. B) central bank. C) capital market. D) liquidity market.
When expansionary policy is unanticipated, it leads to a short-run expansion in output and employment
a. True b. False Indicate whether the statement is true or false
Which of the following is not a macroeconomic question?
A. Should we have a constitutional amendment requiring the federal government to balance the budget each year? B. Should restaurants be required to list the number of calories for each product on their menus? C. How does a fiscal stimulus package affect gross domestic product? D. Should Congress enact tougher immigration laws to reduce unemployment?
With a reserve ratio of 0 percent, the maximum potential money multiplier is
A. 0. B. 1. C. 100. D. infinitely large.