To eliminate a recessionary gap, the government can ________ government expenditures on goods and services or ________ taxes
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
E) increase; not change
B
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It is possible for every nation to have BOP surpluses
Indicate whether the statement is true or false
In New York, a welfare recipient can earn $90 per month without having her benefits reduced. Beyond $90, benefits are reduced by 57 cents for every dollar of earnings. Consider Jackie, a resident of New York, who can earn $10 per hour. If she does not work at all, she is eligible for welfare benefits of $577.
(A) If she works 10 hours, how much are her work earnings, how much is her welfare benefits, and how much is her total income? (B) After Jackie works a certain number of hours, she does not receive any benefits at all. What is that number of hours?
Assume the graph shown shows Bobbi's budget constraint. If hairbands cost $5, then Bobbi's income to spend on these two items must be:
A. $8.
B. $6.
C. $40.
D. Cannot be determined without more information.
All other factors equal, if the costs of converting bonds and other financial securities to a means of payment increase:
A. it shouldn't impact the transactions demand for money. B. nominal interest rates should decrease. C. the transactions demand for money should increase. D. the transactions demand for money should decrease.