When the government borrows from the public, the result is
A. a decrease in unemployment.
B. an increase in real GDP.
C. downward pressure on interest rates.
D. an increase in the demand for loanable funds.
D. an increase in the demand for loanable funds.
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With a good on each axis, the production possibilities frontier is downward-sloping, which suggests
A) there is no limit to the amount of each good that can be produced. B) the production of one good ultimately means sacrificing production of the other. C) there are no opportunity costs of producing either of the goods. D) All of the above are true.
If the currency to deposit ratio decreases and the monetary base is unchanged, the value of the money multiplier will ________ and the value of the money supply will ________
A) decline; decline B) decline; increase C) increase; decline D) increase; increase
An increase in the wage rate will cause the labor supply curve to shift to the right
a. True b. False
Which of the following is true? The federal government's budget
a. was always in surplus until the 1980s b. is in deficit now but has been in surplus in most of the past 40 years c. has been virtually perfectly balanced for the past 5 years d. deficit has averaged around zero for the last several decades e. switched from deficits to surpluses in the late 1990s