While some supporters of the balanced budget amendment argue that governments should balance their budgets just like households do, which of the following is a valid argument against a balanced government budget?
a. The government has macroeconomic responsibilities.
b. The government has microeconomic responsibilities.
c. The government is larger than a household.
d. Households depend on the government.
a. The government has macroeconomic responsibilities.
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In a "crawling peg" regime, ________
A) the value of the currency is fixed to a basket of commodities B) higher inflation is permitted C) several anchor currencies are used in succession D) the currency may gain value, but cannot lose value
If the probability a firm is being embezzled is 2 percent and the estimated potential cost to the firm from embezzlement is $100,000, what is the expected cost of the embezzlement?
A) -$2,000 B) $200 C) -$200 D) $2,000
The implementation lag for monetary policy is _____ for monetary policy than fiscal policy; the lag before the full effects of monetary policy on inflation are felt is ____ than for its effects on real output and unemployment:
a. Longer, longer b. Longer; shorter c. Shorter; longer. d. Shorter; shorter
Which of the following is NOT a characteristic of the capitalist form of economic organization?
A. Central planning. B. A reliance on decentralized market processes for resource allocation purposes. C. Private ownership of productive resources. D. All decisions are made by the government.