The ______ is a theory describing how a budget deficit reduces investment spending and long-term economic growth.
a. Fannie Mae effect
b. upside down effect
c. Dodd-Frank effect
d. crowding-out effect
d. crowding-out effect
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A union can be viewed as a monopoly seller of a service. What are the three wage and employment strategies the union might use?
What will be an ideal response?
An increase in the discount rate by the Federal Reserve causes the money stock to expand
a. True b. False Indicate whether the statement is true or false
Mamma's Honey sells locally produced raw honey at an equilibrium price of $12 a jar and an equilibrium quantity of 200 jars. Which of the following is most likely to be true if the government begins to pay a $3-per-jar subsidy to the seller? a. The price paid by buyers will increase
b. The price received by sellers will decrease. c. The quantity demanded by buyers will decrease. d. Total surplus will decrease.
When the inflation rate of a country is high over a lengthy time period,
a. the year-to-year variability in the rate of inflation is generally small. b. the year-to-year variability in the rate of inflation is generally large. c. decision makers will be able to forecast future rates of inflation accurately. d. there is no reason to believe that the inflation will exert harmful side effects on real output and the prosperity of the country.