The response of investment spending to an increase in the government budget deficit is called
A) expansionary investment.
B) private dissaving.
C) crowding out.
D) income minus net taxes.
Answer: C
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What is one of the concerns of opponents of inflation?
a. Indexing is always partial. b. Indexing is always fair. c. Indexing is sometimes partial. d. Indexing is sometimes fair.
Joseph Schumpeter is most closely associated with the
A. theory of innovations. B. psychological theory. C. inventory cycle theory. D. monetary theory.
Based on our understanding of the wage setting equation, which of the following will not cause a reduction in the nominal wage?
A) an increase in unemployment B) a reduction in the expected price level C) a reduction in expected productivity D) all of the above E) none of the above
In 2008, the wealth of U.S. households fell by ________
A) $11 million B) $11 billion C) $11 trillion D) $11 gajillion