Large budget deficits tend to
A. raise interest rates.
B. lower interest rates.
C. have no effect on interest rates.
A. raise interest rates.
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Use the following diagram to answer the next question.
Based on this diagram, we can say ________.
A. monetary policy is likely to be more effective at fighting a recession than fiscal policy B. investment demand is very sensitive to changes in the interest rate C. an increase in the money supply will have little effect on investment or aggregate demand D. expansionary monetary policy will be more effective at increasing aggregate supply than aggregate demand
As the quantity of labor employed decreases, the value of marginal product diminishes
Indicate whether the statement is true or false
Broadly speaking, Social Security redistributes incomes from high-to low-income individuals, from men to women, and from young to old.
A. True B. False C. Uncertain
Refer to Scenario 2.1. What is the equilibrium quantity of books sold?
A) 25 B) 50 C) 75 D) 100 E) none of the above