If the federal government collects $10 billion in taxes and then spends it on the public, the money supply
A) rises by $20 billion.
B) rises by $10 billion.
C) falls by $10 billion.
D) is unaffected.
D
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Which of the following statements is true of economic growth and GDP across the world before 1800?
A) There was sustained growth because whatever improvements in GDP were realized were invested in capital equipment. B) The income per capita in all countries throughout the world was less than $500 per capita. C) The income per capita in all countries throughout the world was more than $1,000 per capita. D) There was a lack of sustained growth because the pace of technological change was slow.
Assume that an individual spends his income on sweaters and shirts. If the price of a sweater increases:
A) the opportunity cost of buying sweaters increases. B) the opportunity cost of buying sweaters decreases. C) the opportunity cost of buying shirts increases. D) There is no change in the opportunity cost of consuming either good.
Generally, an open economy can ____unavailable correct a country's stock of resources
Fill in the blank(s) with the appropriate word(s).
Consumption is
A. positively related to household income and wealth, interest rates, and households' expectations about the future. B. determined only by income. C. positively related to household income and wealth and households' expectations about the future, but negatively related to interest rates. D. negatively related to household income and wealth, interest rates, and households' expectations about the future.