If a Balanced Budget Amendment to the U.S. Constitution were passed, during an economic slowdown, such an amendment would
A. necessitate a tax increase or spending cut, or both.
B. have no impact.
C. necessitate an increase in interest rates.
D. necessitate a tax cut or spending increase, or both.
Answer: A
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Which of the following is not included in the sum of national income?
A. Interest B. Rent C. Depreciation or consumption of fixed capital D. Profits and losses
In the United States, each bank panic in the late nineteenth and early twentieth centuries was accompanied by
A) inflation. B) a recession. C) deflation. D) a depression.
If you grant that the long-term benefits of Head Start are in doubt and focus, instead, on the short-term benefits, you find that
A. children in Head Start are more likely to need special education classes. B. children in Head Start are less likely to repeat first or second grade. C. Head Start has no effect there either. D. Head Start children do much worse in Kindergarten.
Exhibit 3-2 Demand curves
In Exhibit 3-2, the shift in the demand curve from D1 to D2 could have been caused by which of the following?
A. Decrease in price. B. Increase in expected future prices. C. Increase in the price of a complement. D. Decrease in income if it is a normal good.