One way to measure national debt over time is relative to:
a. the cash flow of the banking system
b. the economy's production and income.
c. credit sales of consumer durables over a year.
d. national home sales in large cities.
e. the economy's savings.
b
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Typically, total utility derived from consumption decreases as more of a good is consumed
Indicate whether the statement is true or false
If education creates external benefits,
a. actual market outcomes provide less than the efficient quantity of education. b. actual market outcomes provide more than the efficient quantity of education. c. actual market outcomes provide a higher price than the efficient price of education. d. the government should impose a depletion tax.
Critics of active monetary and fiscal policy emphasize
a. that policy affects the economy with a lag and our ability to forecast future economic conditions is poor. b. "leaning against the wind" of economic change to stabilize the economy. c. cutting government spending, raising taxes, and reducing the money supply when aggregate demand is excessive. d. boosting government spending, lowering taxes, and increasing the money supply when aggregate demand is low.
The linkages of the interest-rate-based transmission mechanism of monetary policy are summarized as follows:
A. change in the money supply ? change in interest rates ? change in transactions balances ? change in government spending ? change in aggregate demand. B. change in the money supply ? change in speculative balances ? change in transactions balances ? change in planned investment ? change in aggregate demand. C. change in the money supply ? change in planned investment ? change in government spending ? change in aggregate demand. D. change in the money supply ? change in interest rates ? change in planned investment ? change in aggregate demand.