The financing of investment spending is often made possible by
A. consumer spending.
B. money supply creation.
C. borrowing.
D. tax reductions.
Answer: C
You might also like to view...
The use of psychological incentives to solve commitment problems would be least effective in games played:
A. once between strangers. B. repeatedly between strangers. C. repeatedly between family members. D. once between family members.
Money market instruments are ________ term and ________ relative to capital market instruments
A) long; risky B) short; risky C) short; less risky D) long; less risky
If investment increases by $100 and, as a result, gross domestic product (GDP) ultimately increases by $200, the multiplier equals _____
a. 1 b. 2 c. 3 d. 4 e. 5
Madison is a third-grade public school teacher who doesn't own a car and uses public transportation. According to public choice theory, which of the following four politicians for a public office would Madison be most likely to vote for in the upcoming election?
a. Politician A proposes increasing the property tax on personal automobiles and using the money to increase teacher salaries by 10 percent. b. Politician B proposes an across-the-board increase in state income tax rates and using the money to increase the benefits paid to unemployed workers. c. Politician C proposes increasing the property tax on personal automobiles and using the money to increase the benefits paid to unemployed workers. d. Politician D proposes an across-the-board increase in state income tax rates and using the money to improve the highway system.