Based on the CBO's projections of governments revenue and expenditure, if entitlement programs remain large and unfunded, the current fiscal policy of the federal government
A) will lead to a larger, but sustainable debt-to-GDP ratio.
B) will have to become more expansionary to remain sustainable.
C) is not sustainable.
D) will still keep the debt-to-GDP ratio relatively stable.
C
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An increase in Swiss interest rates will cause
A) an increase in the demand for U.S. dollars and an increase in the exchange rate of Swiss francs per dollar. B) a decrease in the demand for U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. C) an increase in the supply of U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. D) a decrease in the supply of U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.
In the food and kindred products industry, it is estimated that the elasticity of output with respect to labor is 0.43 and the elasticity of output with respect to capital is 0.48
These two measures indicate that the primary metals industry is characterized by A) decreasing returns to scale. B) constant returns to scale. C) increasing returns to scale. D) no returns to scale.
If the demand curve is given by Q = a + bp, then a is
A) negative. B) the quantity demanded when price is zero. C) the slope of the demand curve. D) measured in money.
The market demand curve in a perfectly competitive industry is horizontal, while the demand curve faced by an individual perfectly competitive firm is downward sloping
a. True b. False Indicate whether the statement is true or false