By definition, a direct expenditure offset will occur whenever
A) the interest rate falls.
B) the interest rate rises.
C) the government increases spending in an area that competes with the private sector.
D) the government increases spending for the military.
C
You might also like to view...
If an economy uses monetary policy as its stabilization tool, the real interest rate and thus ________-run economic welfare depend on that economy's ________ policy
A) short, monetary B) short, fiscal C) long, monetary D) long, fiscal
If a firm has developed a very popular chocolate bar recipe, the firm would consider the chocolate bar recipe to be which of the following?
A) a trademark B) a copyright C) a patent D) a trade secret
During the 1950s and 1960s, the national debt as a percent of GDP in the United States
a. soared to an all-time high. b. declined. c. increased. d. was virtually unchanged.
A government is running a budget deficit if:
A. government revenue exceeds government spending. B. imports exceed exports. C. exports exceed imports. D. government revenue is less than government spending.