The more sensitive planned investment is to the interest rate, the less effective fiscal policy.
a. true
b. false
Answer: a. true
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Figure 5-5
Figure 5-5 shows a consumer budget line for French fries and hamburgers. The household allocates a budget for these two goods.. If the price of an order of french fries is $2, how much income is allocated to fries and burgers combined?
a.
$2
b.
$4
c.
$20
d.
$40
Which is not a trade-off for students who spend a semester abroad?
(A) Eating all of their favorite foods. (B) Experiencing the culture of another country. (C) Missing family activities at home. (D) Seeing friends from home daily.
According to the crowding-out view, budget deficits will:
A. reduce interest rates. B. increase interest rates and retard private investment. C. reduce the investments of foreigners in the United States. D. increase the capital stock available to future generations.
A factor market is any place or process where
A. Finished services are bought and sold. B. Land, labor, or capital is bought and sold. C. Finished goods are bought and sold. D. None of the choices are correct.