The budget of an unconstrained government is similar to a common pool resource, and this will lead to
A) lower interest rates and spending levels consistent with economic efficiency.
B) excessive spending and budget deficits.
C) lower taxes and a deficient level of spending.
D) a deficient level of spending and budget surpluses.
B) excessive spending and budget deficits.
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If goods are produced abroad but consumed domestically,
a. those goods are termed imports b. international trade has not occurred c. the domestic economy is economically inefficient d. there are no gains from specialization e. those goods are termed exports
If the price of a good in a closed economy is lower than the world price, then with an open economy this country will be a ________ of that good.
A. net exporter B. net importer C. price taker D. price setter
The marginal units of action choice X:
A. are the last ?X units and tend to generate the greatest amount of marginal benefits. B. are the last ?X units and tend to generate the smallest amount of marginal costs. C. are the initial ?X units, where ?X represents the change in the units of X. D. are the last ?X units, where ?X is the smallest amount you can add or subtract.
Which of the following about inventory changes and GDP is true?
What will be an ideal response?