Suppose the government increases spending by $30 billion and raises taxes by $20 billion at the same time. Then:
A. interest rates will most likely increase.
B. business investment is not likely to change.
C. interest rates will most likely stay the same.
D. business investment is likely to increase due to crowding out.
Answer: A
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People who lost their jobs as hand-drawn animators because of the popularity of computer-generated 3D animation are examples of persons who are suffering
A) cyclical unemployment. B) frictional unemployment. C) seasonal unemployment. D) structural unemployment. E) unnatural unemployment.
Flexible exchange rates occur when
A) speculators bet that a currency will soon depreciate. B) governments and central banks spend foreign exchange to prop an exchange rate at a certain level. C) no one knows the true value of a currency. D) exchange rates are determined by forces of supply and demand.
The Equal Employment Opportunity Commission was established by
a. the Social Security Act b. the Reagan administration c. the Civil Rights Act d. the Equal Rights Amendment e. the Wagner Act
Willingness to pay
a. measures the value that a buyer places on a good. b. is the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept. c. is the maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to accept. d. is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.