Answer the following statement(s) true (T) or false (F)
1. Federal government borrowing can have a negative effect on future consumption.
2. The supply-side economists believe that a decrease in tax rates increases national income.
3. Transfer payments, such as unemployment insurance benefits and food stamps, act as automatic stabilizers.
4. Discretionary fiscal policy is an exceptionally effective policy and suffers from no drawbacks.
5. The crowding-out effect may be caused by expansionary fiscal policy.
1. T
2. T
3. T
4. T
5. T
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States may manipulate the price of their currency downward in order to
a. increase their trade deficit. b. encourage emigration. c. boost their trade surplus. d. import more foreign goods.
The current international economic system is largely characterized by fixed exchange rates, which promotes trade
Indicate whether this statement is true or false.
If you are presented with a ballot that organizes the candidates according to the office they are seeking and their party affiliation is indicated with a label, then your state uses
a. an Indiana ballot. b. a candidate-based ballot. c. an office-bloc ballot. d. an Australian ballot. e. a Massachusetts ballot.
The major consequence of the press’s increased emphasis on conflict and image is ______.
a. increased appreciation among the public for the importance of the political process b. increased cynicism among the public toward both the media and politics c. increased cynicism among the public toward the media and increased sympathy for politicians d. a public sense of urgency that the people participate in politics e. an increased dependence on the media as the only source of truth about the political world