During a recession, automatic stabilization causes the government budget deficit to
A) fall.
B) increase.
C) remain stable.
D) move in the same direction as Y.
B
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Under perfect competition, the lure of profits makes producers try to equate marginal cost and price.
Answer the following statement true (T) or false (F)
Liam wants to buy some milk and a box of cereal. If Liam buys 4 gallons of milk at $3.00 per gallon, the box of cereal costs $2.00 . If he buys 5 gallons of milk, the box of cereal is free. For Liam, the marginal cost of buying a fifth gallon of milk is
a. zero. b. $1.00. c. $2.00. d. $3.00.
On a bank's T-account, which are part of the bank's assets?
a. both deposits made by its customers and reserves b. deposits made by its customers but not reserves c. reserves but not deposits made by its customers d. neither deposits made by its customers nor reserves
Crowding out refers to the effect that:
A. C and I are completely unrelated to changes in G. B. C and I are indirectly affected by changes in G. C. C is directly affected by changes in G. D. C and I are directly affected by changes in G.