Economists who argue in favor of rapid deficit reduction claim that deficit reduction will
a. reduce crowding in, reduce interest rates, and increase AS.
b. stimulate AD and productivity.
c. trigger crowding in, increase investment, and increase AS.
d. reduce crowding out, increase investment, and increase AS.
d
You might also like to view...
The United States imports shoes from third world countries. This means that if the U.S. economy were closed, the domestic price of goods would be ________ the world price of shoes.
A. greater than B. close to C. less than D. equal to
Denise owns a plant that produces watch parts in Ohio. Denise noticed that when she hired the last worker, that worker's marginal product exceeded the marginal product of the previous worker
As a result, when the last worker was hired, Denise's average product of labor A) decreased. B) increased. C) did not change. D) perhaps changed, but there is not enough information to determine whether or not it did change. E) equals the marginal product of labor.
When marginal analysis is used to determine the optimal quantity of accident avoidance, all of the following are true except which one?
A) The sum of the expected cost of an accident and the cost of avoiding accidents is minimized. B) The expected marginal benefit of accident avoidance exceeds the marginal cost. C) The total cost of the accident is minimized. D) The expected marginal benefit of accident avoidance equals the marginal cost.
The point of profit maximization for a monopolist is exemplified by
A) TR = TC. B) MR = MC. C) ATCmin. D) MR > MC.