If the government uses its budget surplus to finance additional government purchases or tax cuts, crowding out will
A. not occur.
B. occur to a greater degree.
C. still occur, but to a lesser degree.
D. occur more rapidly.
Answer: A
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Under a standard of contributory negligence, a plaintiff cannot collect for damages if his cost of preventing the accident is less than
a. the defendant's cost of preventing the accident. b. the damages incurred from the accident. c. the damages incurred times the probability of the accident's occurrence. d. the punitive damages imposed by the court.
Suppose a commercial banking system has $240,000 of outstanding checkable deposits and actual reserves of $85,000. If the reserve ratio is 25%, the banking system can expand the supply of money by a maximum of
A. $5,000. B. $25,000. C. $75,000. D. $100,000.
Diversification:
A. reduces the likelihood that bad things will happen. B. means you're not likely going to be completely ruined by a single unfortunate event. C. increases the likelihood that bad things will happen. D. None of these statements is true.
To be officially classified as unemployed, a person must be
A. at least 16, not working and actively seeking employment. B. collecting unemployment benefits. C. at least 21 and not working. D. laid off or fired.