"Crowding out" will ____ expansionary fiscal policy because it results in ____
a. weaken; a depreciated value of the dollar
b. strengthen; reduced imports
c. weaken; increased interest rates
d. strengthen; increased tax revenues
Ans: c. weaken; increased interest rates
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Where are the final goods and services produced that are included in Germany's GDP?
A) anywhere, as long as they are produced using German labor B) within Germany C) within Germany but only if they are produced using only German resources D) outside of Germany E) anywhere, as long as they are produced using German resources
The payments system is
A) the method of conducting transactions in the economy. B) used by union officials to set salary caps. C) an illegal method of rewarding contracts. D) used by your employer to determine salary increases.
What are direct expenditure offsets and how do they influence the effects of fiscal policy?
What will be an ideal response?
Michigan has an abundant supply of fresh water. However, an economist would consider it a scarce resource because
a. water is necessary for humans' physical survival b. pollution will eventually destroy all life in the Great Lakes c. water is limited relative to people's unlimited wants d. water commands a very high price e. nature can destroy water as well as create it