Which of the following does not reduce the potential burden of an increase in debt on future generations?
a. the growth rate of output is high
b. in response to increased debt, parents save more to leave their children larger bequests
c. budget deficits raise interest rates
d. All of the above are correct.
c
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Which of the distributive standards does NOT involve a value judgment?
A. egalitarian standard B. merit standard C. productivity standard D. All of the standards involve value judgments.
With ________, outcomes of specific interventions are determined by using the intervention in a randomly selected subset of a sample and then comparing outcomes from the exposed and control group.
A. natural experiments B. manipulated experiments C. random experiments D. predetermined experiments
Even when the demand for one good is high, the price of the good is also affected by supply. The textbook illustrates this by comparing the price of two items that were auctioned on the same day
Which of the following describes the results of the auction? A) A letter written by Abraham Lincoln sold for a higher price than a letter written by John Wilkes Booth. B) A letter written by John Wilkes Booth sold for a higher price than a letter written by Lee Harvey Oswald. C) A letter written by Abraham Lincoln was sold for a higher price than a letter written by Adam Smith. D) A letter written by John Wilkes Booth sold for a higher price than a letter written by Abraham Lincoln.