In the long run, large and continuing budget surpluses
a. mean higher taxes and a lower standard of living
b. mean a larger money supply and higher interest rates
c. are a problem because they crowd out private spending
d. permit the government to lower taxes, thereby encouraging work, investment, and saving
e. mean a larger money supply and lower interest rates
D
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Refer to Figure 18.4. With free trade, how many gloves are produced domestically in Duckland?
A) 100 B) 80 C) 60 D) 0
Which of the following is most closely related to the "fair results" approach to fairness?
A) efficient resource use B) having an equal income distribution C) voluntary exchange D) the command system of allocating resources E) price hikes in a natural disaster
Refer to Figure 9-1. Suppose the government allows imports of leather footwear into the United States. What will be the quantity demanded?
A) 5 units B) 10 units C) 15 units D) 20 units
If income falls without any change in interest rates, then according to the IS-LM model it may be true that:
a. money demand fell and government spending declined. b. the money supply increased and taxes declined. c. tight monetary policy and easy fiscal policy. d. easy monetary policy and easy fiscal policy.