Suppose an elected official wishes to introduce a new government program. Under a PAYGO rule, this new program would be adopted only if
A) the budget deficit is reduced by the same amount as the costs of the new program.
B) the budget deficit is reduced by half the amount of the costs of the new program.
C) the new program does not result in an increase in the current or future budget deficit.
D) none of the above
C
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The Solow Growth Model is a tool that is used for studying:
A) how aggregate demand is determined. B) how net exports are determined. C) how aggregate supply is determined. D) how aggregate income is determined.
In colonial America, ____________ was/were especially scarce, while the supply of _______________ was plentiful
a. land and labor; capital b. capital and labor; land c. land and capital; labor d. unskilled labor; skilled labor
Macroeconomists test their theories using controlled economy-wide experiments of various kinds
a. True b. False Indicate whether the statement is true or false
An investor who diversifies by purchasing a 50-50 mix of two stocks that are not perfectly positively correlated will find that the standard deviation of the portfolio is:
A. greater than the standard deviation from holding the same balance in only one of these stocks. B. the sum of the standard deviations of the two individual stocks. C. less than the standard deviation from holding the same balance in only one of these stocks. D. greater than the sum of the standard deviations of the individual stocks.