If you are told that the government had an actual budget deficit of $50 billion, then you would:
A. know that fiscal policy was expansionary.
B. know that fiscal policy was producing a cyclical deficit.
C. not be able to determine the direction of fiscal policy from the information given.
D. know that fiscal policy was contractionary.
Answer: C
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The idea that investors today compare the returns on bonds with differing times to maturity to see which is expected to give them the highest return is the underlying principle behind the ________ of the term structure of interest rates
A) expectations theory B) investors' viewpoint analysis C) segmented-markets theory D) yield comparison theory
Arrow's impossibility theorem is not relevant to modern analysis of political economy.
A. True B. False C. Uncertain
You are the Minister of Trade for a small island country with the following annual PPC:
You are negotiating a trade agreement with a neighboring island with the following annual PPC:
What's the minimum number of fish you would be willing to accept in exchange for a coconut?
A. 4 B. 3 C. 5 D. 2
Brazil, Russia, and Thailand are referred to as:
A. Industrially advanced countries B. Middle-income developing countries C. Low-income developing countries D. Command economies