The supply of loanable funds is equal to the supply of saving in the economy. The three sources of saving in an economy include all of the following except
A) households.
B) businesses.
C) the government.
D) the foreign sector.
B
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According to Okun's law, an increase in the unemployment rate will cause ________ in the level of employment and ________ in the level of output
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
Minimum wages are:
A. not very controversial. B. only enforceable at the federal level. C. a form of government interference in the free market. D. always needed to guarantee workers an acceptable standard of living.
Which of the following is a valid concern about federal budget deficits?
A. The welfare of future generations will be directly related to the per-capita size of the national debt that they inherit. B. Growth of the national debt will eventually lead to the bankruptcy of the government. C. When the debt comes due, future generations may be unable to pay it off. D. If the increases in the national debt reduce private expenditures on capital formation, aggregate demand is reduced.
A change in the slope of a budget line is solely the result of a change in:
A. consumer preferences. B. the price of one good relative to the other. C. money income. D. the slope of the indifference curve that is tangent to the budget line.