All of the following are possible explanations for the increase in U.S. government budget deficits as a percentage of GDP since 2000 EXCEPT
A. increases in government spending.
B. increases in payments for entitlements.
C. decreases in tax rates.
D. increases in tax revenues.
Answer: D
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All of the following are benefits of the Fed having only the single goal of price stability EXCEPT
A) the Fed would be more credible. B) the fed would not be distracted and led astray by other concerns. C) there would be greater reliance on fiscal policy for economic stabilization. D) the Fed would be free from political pressures.
An increase in expected future disposable income ________ consumption expenditure and ________
A) increases; shifts the consumption function downward B) increases; shifts the consumption function upward C) decreases; shifts the consumption function upward D) increases; results in a movement upward along the consumption function E) decreases; shifts the consumption function downward
The unemployment rate is higher with a minimum wage law than it would be without a minimum wage law
Indicate whether the statement is true or false
Explain why using a firm's profits to reinvest in the company is really not "free borrowing"?
What will be an ideal response?