Suppose initially the federal budget is balanced. The economy then enters a period of expansion. What is likely to happen to the federal budget?
A) It will remain balanced. B) It will show a deficit.
C) It will automatically stabilize. D) It will show a surplus.
D
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The law of demand is illustrated by a demand curve that is:
a. horizontal. b. downward-sloping. c. vertical. d. upward-sloping.
A devaluation is a reduction in the official value of a currency.
Answer the following statement true (T) or false (F)
When the market price has fallen below a firm's ATC but is above its AVC, in the short run, the firm:
A. can minimize its losses by staying open. B. is earning positive profits. C. then a firm is covering all of its fixed costs, but not all of its variable costs. D. then MC must be greater than MR.
Which of the following is true?
A. People tend to enjoy the process of buying a car more when the process involves difficult choices. B. Budgeting your income will often result in less total spending. C. High prices and rebates on cars simply irritate the consumer and make him feel treated like a fool. D. People prefer the toll ways where they throw in some change every dozen miles or so to a toll road that has one payment at the end of the trip.