In the classical model, beginning from an equilibrium in which the government is running a budget surplus, an increase in government spending will
a. lower the wage rate
b. increase the supply of loanable funds
c. cause total spending to decline
d. cause total spending to increase
e. leave total spending unchanged
E
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Which of the following variables is a flow concept?
a. Gross domestic product b. Assets c. Wealth d. Money supply e. Saving
Which part of the average total cost (ATC) curve is described in the following scenario? To keep up with an increase in sales, a bread factory has added workers and equipment. The factory is teeming with employees, equipment breaks down, injuries occur, and tools are misplaced.
a. High ATC at low output.
b. Low ATC at high output.
c. High ATC at high output.
d. Low ATC at low output.
How did the existence of the baby boom generation change demand in the United States?
a. Demand was raised for different goods with each age the baby boomers reached. b. After they reached the teenage years, the baby boomers were integrated into the society and no longer affected demand. c. People were poorer because they had so many children, so demand was lowered. d. The baby boomers did not raise demand until they became adults, when they had their own money to spend.
No nation needs default on debts that call for repayment in its own currency. However, Russia astounded the financial world in 1998 by choosing to default on its
A. dollar denominated debt. B. ruble denominated debt. C. British sterling pounds denominated debt. D. none of these.