Which of the following statements about government borrowing is not true?
A. It provides the government the ability to maintain spending levels during economic downturns
B. "Crowding out" of private investments is a major opportunity cost of government borrowing
C. Its opportunity cost is likely to be quite high during an economic downturn
D. A bigger budget deficit will result in a bigger amount of government borrowing
C. Its opportunity cost is likely to be quite high during an economic downturn
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If the percentage change in quantity demanded is zero for any percentage change in the price of the good, demand is classified as:
A. perfectly inelastic. B. inelastic. C. unit elastic. D. perfectly elastic.
In the above figure, if the price level is 150
A) total planned production exceeds total expenditures. B) total planned production is less than total expenditures. C) total expenditures exceed total planned expenditures. D) total planned production equals total expenditures.
The purpose of convention is
A) to create a Nash game. B) to determine one equilibrium out of a multi-equilibrium situation. C) to offer multiple choices to players. D) all of these choices.
If Japanese real interest rates fall relative to real interest rates in the U.S., the yen will likely appreciate and the dollar will likely depreciate
Indicate whether the statement is true or false