The balanced budget multiplier applies when a $50 billion increase in government expenditure is financed by a $50 billion ________ in tax revenue and the balanced budget multiplier shows that in this case there is ________ effect on aggregate demand
A) increase; no
B) decrease; a positive
C) increase; a positive
D) increase; a negative
E) decrease; no
C
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Among the factors that have a negative impact on savings in the United States is the
A) tax system. B) fact that colleges give less in financial aid to students whose families have savings. C) structure of our welfare programs. D) all of the above.
Suppose that all banks maintain a 100 percent reserve ratio. If an individual deposits $ 3,000 of currency in a bank,
A. the money supply is unaffected. B. the money supply rises by more than $3,000. C. the money supply rises by less than $3,000. D. the money supply decreased by less than $3,000.
Refer to Scenario 9.6 below to answer the question(s) that follow. SCENARIO 9.6: Celeste borrowed $40,000 from her brother to open a car wash. She pays her brother a 5% yearly return on the money he lent her. Her other yearly fixed costs equal $18,000. Her variable costs equal $40,000. In her first year, Amy sold 40,000 car washes at a price of $2.50 per car wash.Refer to Scenario 9.6. Celeste's total costs equal
A. $20,000. B. $40,000. C. $60,000. D. $100,000.
The Prisoner's Dilemma is an example of
A) market signaling. B) a zero-sum game. C) a non-zero sum, non-cooperative game with a dominant strategy. D) adverse selection.