In fiscal year 2001, the U.S. government ran a surplus of about $127 billion. In fiscal year 2002, the government ran a deficit of $159 billion. Other things the same, this change would be expected to have
a. decreased interest rates and investment.
b. decreased interest rates and increased investment.
c. increased interest rates and investment.
d. increased interest rates and decreased investment.
d
You might also like to view...
What is measured on the horizontal axis of the aggregate demand/aggregate supply model?
A) real wealth B) real Gross Domestic Product (GDP) C) prices D) nominal income
Suppose you are in charge of product pricing and marketing strategy for a pharmaceutical company. You will have greater ability to independently set prices for your product if:
A) there are no close substitutes for your product. B) there are lots of other firms selling closely related products in your market. C) your market is perfectly competitive. D) none of the above
A movement along a supply curve is induced by a change in
A) input prices. B) taxes and subsidies. C) price expectations. D) the product's own price.
Which of the following is incorrect?
A. Money is a means of payment but is not part of wealth. B. Money is wealth but not all wealth is money. C. An asset doesn't have to be a means of payment to be a part of a person's wealth. D. All items considered wealth can eventually be converted to a means of payment.