Government debt which pays for ________ is a burden in that it yields no ________ benefits
A) hospitals, future
B) ammunition for military target practice, current
C) Social Security benefits, future
D) public universities, current
C
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What is the significant feature of a preferential arrangement?
What will be an ideal response?
If an economy experiences an increase in its labor force, everything else constant, then at constant world prices, it will
A) produce more of the labor intensive good and less of the capital intensive good. B) produce more of both goods. C) produce the same amount of both goods. D) produce less of the labor intensive good and more of the capital intensive good.
The flexible accelerator theory
A) recognizes that the desired capital-output ratio is not a constant. B) assumes that firms can make this period's actual capital stock equal to the desired capital stock. C) sets this period's expected output equal to last period's actual output. D) recognizes that a constant fraction of the capital stock is replaced each period.
A bank has a reserve requirement of 0.10. If it has demand deposits of $100,000 and is holding $12,000 in reserves:
A. the bank is holding $2,000 in excess reserves. B. the bank is not meeting its reserve requirement. C. all reserves are required reserves. D. all the bank's reserves are excess reserves.