Economic theory and history indicate that open elections and democratically elected governments
a. are unique in their ability to produce good economic institutions.
b. must be accompanied by economic institutions that will allocate resources efficiently, or otherwise democratic institutions will not survive.
c. reflect only transactions that are based on mutual agreement and voluntary exchange.
d. are unable to guarantee either the emergence or continuation of economic institutions and policies that will encourage productive behavior.
D
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Which of the following statements concerning seasonal credit is true?
A) It tends to have a lower interest rate than federal funds. B) It has become increasingly more important in recent years. C) Only firms receiving secondary credit are eligible to receive seasonal credit. D) Improvements in credit markets have reduced the need for a seasonal credit facility.
One of the strong parallels between the development of virtual currencies and the development of currencies in the United States during the 1800s is:
a. Both began as physical currencies. b. They owe their size and stature to governments, worldwide, that supported their growth and development. c. They owe their growth and development to public trust. d. All of the statements above are true.
A budget surplus occurs when government receipts fall short of government spending
a. True b. False Indicate whether the statement is true or false
When you compare the effects of government spending on aggregate demand with the effects of taxes on aggregate demand, the effects of government spending are
A. smaller. B. larger. C. the same. D. impossible to predict.