Private saving increases to some extent when governments run large budget deficits, and private saving falls when governments reduce deficits or run large budget surpluses.
Select whether the statement is true or false.
A. True
B. False
A. True
This statement is true. Private saving increases to some extent when governments run large budget deficits, and private saving falls when governments reduce deficits or run large budget surpluses.
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Exports are:
A) positively related to the level of foreign income and negatively related to the exchange rate. B) positively related to the level of foreign income and positively related to the exchange rate. C) negatively related to the level of foreign income and negatively related to the exchange rate. D) negatively related to the level of foreign income and positively related to the exchange rate.
Which of the following transactions would represent an addition to a nation's current gross domestic product?
A. Ms. Smith purchases a share of stock in an automobile company. B. A retailer increases her stock of imported shoes. C. The government increases its domestic purchases of food for use by the military. D. A corporation sells shoes from last year's inventory. E. A mother sells her car to her daughter.
For a single-price monopolist, marginal revenue falls faster than price (as output rises) because
A) the firm has no supply curve. B) in order to sell additional units, the price must be lowered on all units. C) the cost of producing extra units of output increases as production is increased. D) profits are maximized when marginal cost equals marginal revenue. E) none of the above — marginal revenue does not fall faster than price.
Along the elastic range of a demand curve, a price change causes:
A. a change in total revenue in the opposite direction. B. a change in total revenue in the same direction. C. no change in total revenue. D. an unpredictable change in the total revenue.