In the short run, a federal budget deficit will most likely _____
a. stimulate aggregate supply
b. reduce federal debt
c. boost economic growth
d. reduce national saving
e. boost domestic saving
d
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Elasticity along a downward sloping linear demand curve
A) is constant and equal to the slope of the curve. B) is constant and equal to the slope times the ratio of price to quantity. C) changes along the curve. D) does not vary with price unless the good is expensive.
All of the following actions are potential rule -of-reason violations except which one?
A) a firm's agreement with a customer about the markets in which the customer is allowed to resell the product B) a firm's agreement with a customer about the resale price of its product C) a tying sale with a customer D) an agreement with a competitor firm to divide the market
A bond has a current market value of $800. The holder of the bond will receive a single payment of $1,000 one year from now. The interest rate is 10 percent. The effective yield on the bond is:
A) $200. B) 10 percent. C) 25 percent. D) negative. E) The yield cannot be determined with the information provided.
Refer to the above figures. Which panel represents the expected relationship between tax revenue and the sales tax rate if static tax analysis is used?
A) Panel 1 B) Panel 2 C) Panel 3 D) Panel 4