Within the framework of the Keynesian model, which of the following would most likely occur if the federal government increased its spending and enlarged the size of the budget deficit during a period of full employment?
a. The rate of inflation would decline.
b. The rate of inflation would rise.
c. A recession would develop.
d. Interest rates would fall.
B
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If you presently have $50,000 saved and earn 15 percent interest per year, about how many years will it take for your investment to triple?
a. 6 b. 8 c. 10 d. 12
Which of the following is the best example of a precommitment used to overcome time inconsistency
A. Finding a running partner and setting a regular schedule of when you will run together. B. Deciding to save a percentage of each month's paycheck. C. Signing up for a free trial membership at the local gym. D. Buying an alarm clock.
A new discovery of large volumes of previously unknown oil deposits in Texas would
A. shift only the long-run aggregate supply curve to the right. B. shift the short-run and long-run aggregate supply curves to the right. C. shift only the short-run aggregate supply curve to the right. D. not affect either the short-run or long-run aggregate supply curves.
Refer to the information provided in Figure 28.3 below to answer the question(s) that follow.
Figure 28.3Refer to Figure 28.3. A minimum wage of $10
A. will lead to unemployment of 40. B. will lead to unemployment of 20. C. will lead to unemployment of 60. D. will have no effect because the minimum wage is set at the equilibrium wage and for a minimum wage to have any effect on the labor market it must be below the equilibrium wage.