If there is a political business cycle and the Federal Reserve supports the incumbent, then we should expect that prior to elections
a. interest rates and output would rise.
b. interest rates would rise and output would fall.
c. interest rates would fall and output would rise.
d. interest rates and output would fall.
c
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One benefit to private sector production of a collective consumption good is _____
a. it overcomes the free riding problem b. private producers can often bundle the good with something else people value c. profits from private companies can be taxed d. provides information valuable in allocating future resources
Economists estimate that decreasing barriers to migration by just 5 percent will:
A. increase economic welfare of sending countries by trillions of dollars. B. decrease economic welfare of the countries that would lose their citizens to richer countries by trillions of dollars. C. decrease economic welfare of receiving countries by more than 5 percent. D. increase economic welfare by more than lifting restrictions on capital mobility in their entirety.
Which one of the following is NOT money?
A. A NOW account B. A debit account C. A two-dollar bill D. Traveler's checks
The Congressional Budget Office reported that federal budget deficits in the United States were likely to increase during the next decade, and due to these higher deficits, "the nation's capital stock ultimately would be smaller, and productivity and
income would be lower than would be the case if the debt was smaller." This higher budget deficit could crowd out business investment if it resulted in an increase in interest rates. Crowding out of business investment would be represented graphically by a A) a shift in the demand curve for loanable funds to the right. B) a shift in the demand curve for loanable funds to the left. C) a movement to the right along the demand curve for loanable funds. D) a movement to the left along the demand curve for loanable funds.