Since Germany is a large open economy, the increase in German borrowing and investment in what was formerly East Germany in the early 1990s resulted in
A) a decline in the world real interest rate.
B) a shift to the right in the German supply of loanable funds curve.
C) an increase in the real interest rate in the United States.
D) a shift to the left in the German demand for loanable funds curve.
C
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What is the largest component of the federal budget?
A) discretionary spending B) entitlements and mandatory spending C) defense spending D) net interest
If another horizontal line were added to the graph to show point F, what would be the value of real aggregate expenditures at point F?
a. $16.2 trillion
b. $16.231 trillion
c. $16.25 trillion
d. $16.3 trillion
The owner of an Oakley store has a more__________ demand curve and the owner of a chicken farm has a more__________ demand curve
a. inelastic; inelastic b. elastic; inelastic c. inelastic; elastic d. elastic; elastic
In 1981, U.S. policy makers predicted a balanced budget as: a. the budget included a decrease in defense expenditures
b. the budget included an increase in the tax rate. c. the budget included an increase in unspecified government spending. d. the growth in GDP was expected to be large enough to lead to an increase in tax revenues despite the tax cut. e. the growth in GDP was expected to be small enough to require less government spending.