In comparison to a government that runs a balanced budget, when the government runs a budget deficit,

A) business investment will fall. B) the equilibrium interest rate will fall.
C) household savings will fall. D) none of the above


A

Economics

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In 1913, the Ford Motor Company decided to pay its employees $5 a day. This wage was significantly higher than what any other organization offered. Henry Ford believed that this wage would make his employees happier, increase their productivity, and lower employee turnover. Economists would say that Mr. Ford offered his employees

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All else equal, the price elasticity of demand tends to be higher when:

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