In an open economy, a decrease in the government's budget deficit will ________ the domestic real interest rate and ________ the level of capital investment in the country, holding other factors constant.
A. increase; increase
B. decrease; increase
C. increase; decrease
D. decrease; decrease
Answer: B
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Workfare requires able-bodied individuals to participate in work-related activities in order to receive transfer payments.
A. True B. False C. Uncertain
The balanced budget multiplier has a range from zero to 1
Indicate whether the statement is true or false
The First Bank of the United States was able to control the money supply by
a. using open market operations b. presenting state banks with their notes for repayment in gold and silver c. changing the national currency on an annual basis d. merging the banking decision making of the executive and the legislative branches e. forcing the Senate Banking Committee to issue fiat money
The diamond-water paradox illustrates the idea that ________ determines what consumers are willing to pay for a particular good.
A. the substitution effect B. marginal utility C. the real-income effect D. total utility