Budget deficits are important because deficits
A) cause bank failures.
B) always cause interest rates to fall.
C) can result in higher rates of monetary growth.
D) always cause prices to fall.
C
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If the government imposes an effective ________, a deadweight loss ________
A) price floor; does not occur B) price ceiling; does not occur C) price ceiling; occurs D) price support; does not occur E) Both answers C and D are correct.
Rational ignorance suggests that voters will
A) be ignorant about all issues. B) be ignorant about issues that are of no special interest to them. C) pursue information on all issues before voting. D) avoid voting if they have no information.
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Suppose Country B's population of workers increased to 600. Which of the following statements is now true?
A. Country B's production possibilities curve has rotated out for only production of iPods. B. Country B's production possibilities curve has shifted straight out. C. Country B's production possibilities curve has shifted straight in. D. Country B's production possibilities are now more limited because of crowding from having more workers.
If the U.S. government changes its policy toward Cuba by allowing U.S. firms to export their goods to Cuba, the
a. Cuban aggregate expenditure curve will shift upward and the equilibrium level of national income in the U.S. will decrease b. Cuban aggregate expenditure curve will shift downward and the equilibrium level of national income in Cuba will decrease c. Cuban aggregate expenditure curve will shift upward and the equilibrium level of national income in Cuba will increase d. U.S. aggregate expenditure curve will shift downward and the equilibrium level of national income in the U.S. will decrease e. U.S. aggregate expenditure curve will shift upward and the equilibrium level of national income in the U.S. will increase