The money supply in an economy declines when, other things equal, _____
a. government spending exceeds borrowing
b. government borrowing exceeds tax revenues and there is a deficit
c. government borrowing exceeds the government deficit
d. government spending exceeds tax revenues
e. government spending exceeds borrowing and there is a surplus
c
You might also like to view...
If products C and D are close substitutes, an increase in the price of C will
A. tend to cause the price of D to decrease. B. shift the demand curve for D to the right. C. shift the demand curves for both products to the right. D. shift the demand curve for C to the left and the demand curve for D to the right.
As macroeconomic conditions improve and consumers' incomes and wealth increase, their demand for many products tends to become ________ price inelastic. As such, the ability of firms to mark up price above cost will ________
A) more; increase B) more; decrease C) less; increase D) less; decrease
Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna receives $70 from the auction, she can infer that
a. Both the bidders were high value bidders b. Both the bidders were low value bidders c. One of the bidders was high value, while the other was low value d. All of the above
Recognizing the incentive power of property rights and markets, some of the most die-hard central planners are now allowing
a. more influence from custom or religion b. family relations to play significant roles c. a role for markets d. communal ownership of property e. inefficient use of resources