Government budget deficits
a. discourage household saving, which increases interest rates and reduces planned investment spending
b. encourage household saving, which increases the funds available for planned investment spending
c. reduce the demand for funds, lower interest rates, and increase planned investment spending
d. discourage planned investment spending by putting upward pressure on interest rates
e. stimulate economic growth by encouraging capital investment
D
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The participation rate is the number of people:
A. employed and unemployed divided by the population aged 16 years and older. B. employed divided by the labor force. C. employed and unemployed divided by the labor force. D. employed divided by the population aged 16 years and older.
What would the Lorenz curve look like if the income distribution were equal?
What will be an ideal response?
If the interest rate is 7 percent on euro-denominated assets and 5 percent on dollar-denominated assets, and if the dollar is expected to appreciate at a 4 percent rate, the expected return on ________-denominated assets in terms of ________ percent
A) dollar; euros is 3 B) euro; dollars is 1 C) dollar; euros is 9 D) euro; dollars is 11
Suppose that the price of eggs increases from 75 cents to $1.00 per dozen and as a result a typical farmer experiences a decrease in egg sales from 300 to 200 dozen per week
Using the method of average values, the absolute price elasticity of demand is A) 1.4. B) 0.8. C) 3.0. D) 1.75.