Government spending that changes automatically without action by Congress is
A) a noncontrollable expenditure.
B) national defense.
C) payments to contractors for routing services performed.
D) discretionary payments.
A
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To convert the nominal interest rate to the real interest rate, we
A) divide the nominal interest rate by the inflation rate. B) multiply the nominal interest rate by the inflation rate. C) subtract the inflation rate from the nominal interest rate. D) add the inflation rate to the nominal interest rate. E) subtract the nominal interest rate from the inflation rate and then multiply by 100.
In the monetarist view, the money supply affects the economy
A. through investment spending and government spending. B. indirectly through interest rates. C. directly, apart from interest rates. D. by altering the size of the money multiplier.
Which of the following statements best describes the budget deficit and trade deficit in the 1980s?
a. In the mid-1980s, the considerable increase in government borrowing was matched by an inflow of foreign investment capital, so the government budget deficit and the trade deficit moved together. b. In the mid-1980s, the considerable increase in government borrowing was offset by an outflow of foreign investment capital, so the government budget deficit and the trade deficit moved in different directions. c. In the mid-1980s, the considerable increase in government borrowing was matched by an inflow of foreign investment capital, so the government budget deficit was reduced while the trade deficit increased. d. In the mid-1980s, the considerable increase in government borrowing was matched by an inflow of foreign investment capital, so the government budget deficit increased while the trade deficit was reduced.
A competitive market has two basic characteristics. What are those two characteristics?